Base Metals Archives - Page 22 of 97

(Reuters) -BHP Group has notified tens of thousands of its workers across the globe that it was cutting their incentive pay after the miner failed to meet its performance goals, the Australian Financial Review reported on Thursday.

The world's largest listed miner will only pay 80% of short-term incentives that were on offer in 2023-24, the AFR reported, citing BHP's employees.

"The docking of incentives has upset some BHP employees who contacted the Australian Financial Review pointing to hiring freezes in some divisions that impacted the ability to hit targets and what they see as unrealistic internal goals," the report said.

These incentives apply to all of BHP's workers and can add up to about 15% of their salaries, according to the report.

The company's leadership cited misses on cost and production targets across some of its divisions, as well as the death of a worker at its Saraji coal mine in Queensland in January as the reason behind the incentive cuts, the AFR reported.

Moreover, workers at BHP's Queensland coal division will receive only 70% of their incentives, the report added, following two production forecast downgrades and the fatality.

This incentive cut comes at a time when Australia's Mining and Energy Union has filed for "same job same pay" orders covering labour-hire workers at BHP's Queensland coal mines, which, if successful, would further weigh on its expenses.

The miner reported in February that its first-half profit was hit by an impairment charge worth $2.5 billion related to its Western Australia nickel business. It also said some global corporate teams were being disbanded in an effort to cut costs.

The company has also failed to meet its target of 3% year-on-year growth in the number of female employees to meet its goal of gender balance by 2025, according to the AFR.

However, BHP said in February it became the first miner in Chile to cross 40% female representation, more than doubling the national industry average.

BHP did not immediately respond to a Reuters request for comment.

(Reporting by Aaditya Govind Rao in Bengaluru; Editing by Savio D'Souza and Anil D'Silva)

BHP Group Limited

Electric trolley system at a mine site

A trolley to electrically assist the movement of extraction trucks.

The project will allow the mining company to advance BHP's global target of net zero operating greenhouse gas emissions by 2050.

It considers an investment of approximately US$ 250 million for the installation of infrastructure that will electrically assist the movement of extraction trucks, in areas where the highest fuel consumption currently takes place.

SANTIAGO, Chile, July 03, 2024 (GLOBE NEWSWIRE) — Escondida | BHP submitted an Environmental Impact Statement (DIA) to the Environmental Impact Assessment System (SEIA), to advance in the "Implementation of the Mining Truck Electrification System in Escondida Norte" project, which seeks to assist the movement of these pieces of equipment inside the mine by means of a trolley system.

The project includes the construction of a new electrical substation and transmission lines both inside and around the Escondida Norte pit. These facilities will electrically assist the movement of trucks inside the mine in the areas where they go up loaded with ore and, consequently, consume more fuel. With this new technology, instead of using diesel, they will be propelled by electrical power, thus reducing the operational greenhouse gas emissions and improving productivity associated with truck performance given the higher travel speed.

About the project, President of Escondida | BHP, Alejandro Tapia, said that "the electric trolley system is one of the initiatives with which we seek to move towards a safer and more sustainable way of operating hand in hand with technology. This project will allow us to reduce the fuel consumption of our extraction trucks and thus advance our goal of net zero operational greenhouse gas emissions by 2050."

The initiative considers an investment of approximately US$ 250 million and during its construction phase an approximate workforce of 112 people on average per day and a maximum of 160 people will be required.

The trolley project is in addition to other technological transformation initiatives that the company maintains in different stages of study and execution, including the progressive incorporation of autonomy in its mining equipment. To date, Escondida | BHP has six autonomous trucks in full operation and by 2025 it expects to have the largest fleet of autonomous equipment in South America.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/a4d97b96-b422-47c6-bf27-54fb97871d83

CONTACT: Josie Brophy, BHP Media Relations josephine.brophy@bhp.com

By Divya Rajagopal, Surbhi Misra and Mrinmay Dey

(Reuters) -The Canadian government has approved Glencore's $6.93 billion acquisition of miner Teck Resources' steelmaking coal unit with strict conditions to preserve jobs, the country's industry minister said on Thursday.

To secure the approval, Glencore has agreed to maintain Canadian headquarters for Elk Valley Resources (EVR) for at least 10 years, ensure a majority of the directors of EVR are Canadians, and maintain significant employment levels at EVR for no less than five years, the ministry said.

In a separate statement, Teck said it would use the deal proceeds to buy back up to C$2.75 billion ($2 billion) of its Class B subordinate voting shares, reduce its debt by up to $2 billion and fund near-term copper growth.

The miner said it expects the deal to close by July 11.

"Today I approved under strict conditions a much narrower transaction whereby Glencore will acquire Teck Resources metallurgical coal business," Industry Minister Francois-Philippe Champagne said in a statement.

He flagged that going forward Canada will set a high bar on net-benefit reviews when assessing mergers and acquisitions of important Canadian companies in the critical minerals space.

"Henceforth, such transactions will only be found of net benefit in the most exceptional of circumstances," Champagne said.

Glencore CEO Gary Nagle said in a statement the company has made significant commitments to the Canadian government to ensure the transaction benefits Canada and British Columbia in the long term.

In November, a Glencore-led consortium sealed one of the mining sector's biggest deals, agreeing to acquire Teck Resources steelmaking coal unit for $9 billion.

Swiss miner Glencore will get 77% of the business in a $6.9 billion cash deal, while 20% will go to Japan's Nippon Steel, which already holds a 2.5% stake.

South Korea's POSCO will swap a stake in two of Teck's coal operations for 3% in the steelmaking coal business Elk Valley Resources.

($1 = 1.3610 Canadian dollars)

(Reporting by Divya Rajagopal in Toronto, Surbhi Misra in Bengaluru; Additional reporting by Nilutpal Timsina; Editing by Alistair Bell and Sonali Paul)

SANTIAGO (Reuters) – Australian mining company BHP requested a permit to build a $250 million electric trolley system at its Escondida copper mine from Chile's environmental regulator, the firm said on Wednesday.

The planned project includes the installation of a trolley system to assist the transit of mining trucks in areas with high fuel consumption, according to a company statement.

"This project will allow us to reduce fuel consumption from our extraction trucks, and as a result move towards our net zero greenhouse gas emissions goal in our operations by 2050," said BHP Escondida's chief Alejandro Tapia.

(Reporting by Fabian Cambero; Writing by Kylie Madry and Stéphanie Hamel; Editing by David Alire Garcia)

(Bloomberg) — Anglo American Plc is considering options to push ahead with a sale of its coal business after an explosion at its flagship Australian mine, including the possibility of selling individual assets or excluding the damaged operation from a potential deal.

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The plan to exit coal formed part of a dramatic restructuring program announced earlier this year by Anglo, as the London-based miner was trying to fend off a takeover pursuit by larger rival BHP Group.

While it also intends to spin off its platinum unit and either sell or separate diamond miner De Beers, the company had been planning to tackle the coal sale first, seen internally and by investors as the most easily achievable part of the restructuring. Anglo has said it already received interest in the assets and a deal for the highly attractive coking coal mines in Australia would have demonstrated early progress to investors looking for signs that Anglo’s go-it-alone approach offers better value than the rejected bid from BHP.

The plan was thrown into question on Saturday when an methane explosion deep underground started a huge fire at Anglo’s Grosvenor coal mine in Queensland. It’s likely to be several months before the company is able to safely reenter the mine, let alone restart mining.

However, the company is reluctant to abandon the sales process despite the setback, given the strong early interest it received in the mines, according to people familiar with the matter. Before the accident, Anglo had been planning to kick off a sales process in the coming months with a view to reaching a deal by the end of the year, said the people, who asked not to be identified discussing private information.

While the company had not laid out how it was going to sell the unit, its options now could include selling the rest of the coal business without Grosvenor or selling the other mines individually, the people said, emphasizing that no final decisions have been made.

While excluding Grosvenor from a sale would result in a lower price, Anglo is keen to move forward and demonstrate that it’s making progress after its board unanimously rejected the approach from BHP in May. The world’s biggest miner is currently restricted from making a fresh approach for Anglo but a six-month regulatory standstill will expire later this year.

A spokesman for Anglo declined to comment.

Anglo rose as much as 2.1% in London to 2,447 pence. The stock slumped as much as 4% Monday after news of the explosion.

Besides a sale of its coal business, Anglo is also working on plans to spin off its majority stake in Anglo American Platinum Ltd. and exit its ownership of De Beers. The company would prefer to wait for a recovery in the diamond market, the people said, as the internal view at the company is that De Beers should command a price that reflects its status as a trophy asset.

(Updates with shares in ninth paragraph.)

Most Read from Bloomberg Businessweek

It hasn't been the best quarter for Legacy Iron Ore Limited (ASX:LCY) shareholders, since the share price has fallen 20% in that time. But that doesn't change the fact that shareholders have received really good returns over the last five years. Indeed, the share price is up an impressive 140% in that time. Generally speaking the long term returns will give you a better idea of business quality than short periods can. Of course, that doesn't necessarily mean it's cheap now. Unfortunately not all shareholders will have held it for the long term, so spare a thought for those caught in the 40% decline over the last twelve months.

So let's assess the underlying fundamentals over the last 5 years and see if they've moved in lock-step with shareholder returns.

View our latest analysis for Legacy Iron Ore

Because Legacy Iron Ore made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one would hope for good top-line growth to make up for the lack of earnings.

For the last half decade, Legacy Iron Ore can boast revenue growth at a rate of 91% per year. That's well above most pre-profit companies. Meanwhile, its share price performance certainly reflects the strong growth, given the share price grew at 19% per year, compound, during the period. So it seems likely that buyers have paid attention to the strong revenue growth. Legacy Iron Ore seems like a high growth stock – so growth investors might want to add it to their watchlist.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

earnings-and-revenue-growth

Take a more thorough look at Legacy Iron Ore's financial health with this free report on its balance sheet.

What About The Total Shareholder Return (TSR)?

Investors should note that there's a difference between Legacy Iron Ore's total shareholder return (TSR) and its share price change, which we've covered above. Arguably the TSR is a more complete return calculation because it accounts for the value of dividends (as if they were reinvested), along with the hypothetical value of any discounted capital that have been offered to shareholders. Legacy Iron Ore hasn't been paying dividends, but its TSR of 227% exceeds its share price return of 140%, implying it has either spun-off a business, or raised capital at a discount; thereby providing additional value to shareholders.

A Different Perspective

While the broader market gained around 13% in the last year, Legacy Iron Ore shareholders lost 40%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. On the bright side, long term shareholders have made money, with a gain of 27% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For instance, we've identified 4 warning signs for Legacy Iron Ore (1 shouldn't be ignored) that you should be aware of.

If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of companies that have proven they can grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Australian exchanges.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Vancouver, British Columbia–(Newsfile Corp. – June 28, 2024) – Flying Nickel Mining Corp. (TSXV: FLYN) (OTCQB: FLYNF) ("Flying Nickel" or the "Company") announces that further to its joint press releases with Nevada Vanadium Mining Corp. ("Nevada Vanadium") dated August 23, 2022, and October 7, 2022, the proposed acquisition of all the issued and outstanding common shares of Nevada Vanadium by Flying Nickel by way of a court-approved plan of arrangement (the "Transaction" or the "Arrangement") continues to progress. An Annual General and Special Meeting of Shareholders of both companies to vote on the Transaction has been set for July 10, 2024. Further details are available in the Joint Management Information Circular dated May 24, 2024 of Flying Nickel and Nevada Vanadium (the "Circular"), available on www.sedarplus.ca.

The Transaction was delayed primarily due to staff turnover at the end of 2022, a change in auditors during December 2022, and also a change in fiscal year end from December 31 to March 31 effective for the 15 months ended March 31, 2023.

The Company also filed an amended technical report on www.sedarplus.ca for Nevada Vanadium's Gibellini Project with an effective date of September 27, 2023, on October 10, 2023. The amendments were principally to re-address the technical report to Flying Nickel. Subsequently, an additional amended technical report was filed on www.sedarplus.ca on February 13, 2024. The additional amendments were primarily to provide: 1) information on work performed on the project and visits by the report author to the site, 2) clarifications on the evaluation of the vanadium price used in the report, 3) a figure showing the project mining claims location relative to each other, nearby towns and infrastructure, 4) relocation of the list of mining claims from the body of the report to an appendix, 5) a statement clarifying that Flying Nickel has not done any exploration or drilling on the Gibellini Project, and 6) a multi-phase budget to complete all the recommended Project development work (geologic, drilling, metallurgical and pre-feasibility study) included in the technical report.

In making its recommendations to acquire Nevada Vanadium, the Company's board of directors (the "Flying Nickel Board") considered a number of factors including the following:

Metals and Geographic Diversification: The Arrangement will provide Flying Nickel with the opportunity for asset diversification, by expanding Flying Nickel's focus from nickel exploration to include vanadium in the critical minerals space, while also providing the opportunity for geographic diversification to span both Canada and the United States. Nevada Vanadium is focused on advancing its vanadium resources in Nevada, USA, while Flying Nickel is advancing its nickel focused project in Manitoba, Canada. Diversification should also appeal to a broader range of prospective investors, given the combined company's intended focus on nickel and vanadium.
Rising Demand for Vanadium in Energy Storage and Renewable Energy: Vanadium is a crucial material in the manufacturing of Vanadium Redox Flow Batteries (VRFBs). In the near future, these batteries have the potential to become a preferred choice for grid energy storage due to their scalability, long cycle life, and ability to rapidly discharge and recharge. With a rising global push towards renewable energy, the demand for grid-scale energy storage systems is expected to increase, thereby driving the demand for vanadium.
Increasing Expansion of Electric Vehicle (EV) Market: Not only does vanadium have the potential to become a key material for energy storage solutions, but it also has potential uses in the EV market. Researchers are exploring the potential of vanadium-based batteries in EVs due to their superior energy density and faster charging capabilities compared to conventional lithium-ion batteries. If this research yields successful results, the EV market could become a significant consumer of vanadium in the long-term.
Pricing of Metals: Flying Nickel views this as an opportune time to invest in a vanadium project due to increasing global demand and constrained supply from Russia and China.
Greater Financing Opportunities and Liquidity: The combined company is expected to have greater funding opportunities in the form of equity or debt financing, government funding and strategic investments, which may otherwise be unavailable to Flying Nickel alone. The common shares of the combined company are also expected to have greater trading liquidity due to the increased number of issued and outstanding shares, all of which are intended to be listed on the TSX Venture Exchange, subject to receiving final approval of such exchange.
Cost Synergies: Public company administrative costs, and other corporate costs, are expected to be reduced for the combined company as a result of there being only one public company resulting from the Arrangement.
Government Policies and Regulations: Many governments around the world are introducing policies to support the renewable energy sector, which in turn is expected to increase the demand for vanadium. In addition, regulations aimed at reducing carbon emissions are forcing industries to adopt cleaner energy sources, which is also likely to positively impact the vanadium market.
Fairness Opinion: The Flying Nickel Board received the Sequeira Partners Fairness Opinion dated as of October 6, 2022, which concluded as at the date thereof and subject to the assumptions, limitations and qualifications contained therein, that the Arrangement consideration to be paid by Flying Nickel pursuant to the Arrangement is fair, from a financial point of view, to Flying Nickel.

Despite the time that has lapsed from the date of the Sequeira Partners Fairness Opinion, the Company considered, but did not proceed with requesting for an update to the Sequeira Partners Fairness Opinion as it was only one of many factors considered in the Flying Nickel Board's recommendations.

Under the terms of the Transaction, Nevada Vanadium shareholders will receive one (1) (the "Exchange Ratio") Flying Nickel common share for each Nevada Vanadium share held immediately prior to the effective time of the Transaction. Despite Flying Nickel's change in share price since October 2022, the Exchange Ratio remains the same as the it is based on the intrinsic value of the underlying assets.

About Flying Nickel

Flying Nickel Mining Corp. is a premier nickel sulphide mining and exploration company. The company is advancing its 100% owned Minago nickel project in the Thompson nickel belt in Manitoba, Canada.

Further information on the Company can be found at www.flynickel.com.

FLYING NICKEL MINING CORP.

ON BEHALF OF THE BOARD

John LeeChief Executive Officer

For more information about the Company, please contact:

Phone: 1.877.664.2535 / 1.877.6NICKELEmail: info@flynickel.com

This news release is not an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. This press release does not constitute an offer of securities for sale in the United States. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent U.S. registration or an applicable exemption from U.S. registration requirements. This news release is not an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-Looking Statements

Certain statements contained in this news release, including any benefits that may be derived by the Company or its shareholders from the Transaction, the successful completion of the Transaction as expected, or at all, the receipt of shareholder, stock exchange, regulatory, court and other required approvals in respect of the Transaction, as well as statements which may contain words such as "expects", "anticipates", "intends", "plans", "believes", "estimates", or similar expressions, and statements related to matters which are not historical facts, are forward-looking information within the meaning of applicable securities laws. Such forward-looking statements, which reflect management's expectations regarding the Company's future growth, results of operations, performance, business prospects and opportunities, are based on certain factors and assumptions and involve known and unknown risks and uncertainties which may cause the actual results, performance, or achievements to be materially different from future results, performance, or achievements expressed or implied by such forward-looking statements.

Forward-looking statements involve significant risks and uncertainties, and should not be read as guarantees of future performance, events or results, and may not be indicative of whether such events or results will actually be achieved. A number of risks and other factors could cause actual results to differ materially from expected results discussed in the forward-looking statements, including but not limited to: changes in business plans; ability to secure sufficient financing to advance the Company's and Nevada Vanadium's project; inability to obtain the requisite shareholder, stock exchange, regulatory, court and other required approvals in respect of the Transaction; the inability of the Company and Nevada Vanadium to complete the requisite conditions precedent to the Transaction, the risks and uncertainties outlined in the Circular; and general market, industry and economic conditions. See the Circular for a discussion of the Transaction and further associated risks. Additional risk factors are set out in the Company's latest annual and interim management discussion and analysis, available on SEDAR+ at www.sedarplus.ca.

Forward-looking statements are based on reasonable assumptions by management as of the date of this news release, and there can be no assurance that actual results will be consistent with any forward-looking statements included herein. Readers are cautioned that all forward looking statements in this news release are made as of the date of this news release. The Company undertakes no obligation to update or revise any forward-looking statements in this news release to reflect circumstances or events that occur after the date of this news release, except as required by applicable securities laws.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/214912

VANCOUVER, BC, June 27, 2024 /CNW/ – Blackstone Minerals Limited ("Blackstone"), Sparta AG ("Sparta") and Norway House Cree Nation ("NHCN", and together with Jim Rondeau1, Blackstone and Sparta the "Concerned Shareholders"), collectively own 35.5% of the common shares ("FN Shares") of Flying Nickel Mining Corp. ("Flying Nickel") (TSXV: FLYN) (OTCQB: FLYNF). The Concerned Shareholders DO NOT SUPPORT either the proposed plan of arrangement pursuant to which Flying Nickel would acquire all of the issued and outstanding common shares of Nevada Vanadium Mining Corp. (the "NV Merger") or three of the four board nominees proposed by Flying Nickel (the "Flying Nickel Slate"). The NV Merger and Flying Nickel Slate will be considered at the annual general and special meeting of Flying Nickel currently scheduled to take place on July 10, 2024 (the "Meeting").

The Concerned Shareholders encourage Flying Nickel shareholders to vote "against" the NV Merger, and "withhold" the Flying Nickel Slate. See "How to Vote AGAINST the NV Merger and FOR the Concerned Shareholders Nominees" below for guidance on how to vote using the form of proxy or voting instruction form that you received from Flying Nickel with your materials for the Meeting.

The Concerned Shareholders intend to propose and vote in favour of an alternate slate of four directors (the "Concerned Shareholders Nominees") to include Mr. Neil Duboff,2 as NHCN's board nominee, together with Mr. Andrew Strickland FAusIMM, Mr. Scott Williamson and Mr. Rhett Brans who will add additional mine development and operating experience to the board. For additional details on the Concerned Shareholders Nominees, see "Concerned Shareholders Nominees – Biographies" below.

Flying Nickel Shareholders that would like to vote FOR the Concerned Shareholders Nominees should contact the Concerned Shareholders' proxy solicitation agent, Carson Proxy, at North American Toll-free: 1-888-511-1228, local or text: 416-804-0825 or by email at christine@carsonproxy.com.

Scott Williamson, Managing Director and CEO of Blackstone said: "Flying Nickel needs a fresh start, and an opportunity to realise the true value of the Minago Project and benefits of working closely with NHCN. Voting against the NV Merger and against the Flying Nickel Slate, and in favour of the Concerned Shareholders Nominees is the only option that will lead to shareholder returns and a clear path forward for the Minago Project."

Chief and Council of NHCN agree with Blackstone and Sparta that the NV Merger is not in the best interests of Flying Nickel or its shareholders, and that the Flying Nickel Slate should not be elected; instead, the Concerned Shareholders Nominees should be elected. NHCN has filed an updated early warning report in connection with this press release, as the Concerned Shareholders may be considered joint actors in relation to matters being considered at the Meeting. NHCN has ownership or control or direction over 17,561,862 FN Shares representing approximately 19.9% of the FN Shares, and together with Jim Rondeau3, Blackstone4 and Sparta5, an aggregate of 31,277,206 FN Shares representing approximately 35.5% of the FN Shares are owned or controlled by the Concerned Shareholders as a group. The Concerned Shareholders control 6,574,311 warrants and 50,000 options. There has been no trade in any FN Shares, and no transaction involving a change of ownership or control of FN Shares that has triggered the requirement to file an updated early warning report.

Blackstone and Sparta's relationship with Flying Nickel

Blackstone is developing the Ta Khoa Nickel Refinery in Vietnam, and considers the Minago nickel project ("Minago Project") as a desirable long-term feedstock opportunity. Minago is a large, world-class nickel deposit, from an IRA compliant jurisdiction, low in contaminants. It is in the traditional territory of NHCN, who are supportive of the Minago Project development.

Blackstone and Sparta participated in the Flying Nickel IPO in 2022 and have been strong supporters of Flying Nickel, participating in subsequent capital raisings. Blackstone's investment in Flying Nickel was made to secure a strategic position in the Minago Project and to have input into the development studies. Initially this relationship worked well, however, around the time of the proposed NV Merger, progress meetings stopped and the working relationship between the groups deteriorated. In 2023, Blackstone visited central Manitoba as part of its due diligence for the Wabowden project option deal. Blackstone notified Flying Nickel that it would be driving past the Minago site and requested a site visit. Flying Nickel refused, as they claimed they did not have the people available to coordinate an investor site visit. When Blackstone drove past the site, the access road looked disused and overgrown. It was obvious that the Minago Project was not progressing.

NHCN's relationship with Flying Nickel

The Minago Project, the only material property held by Flying Nickel, is located in NHCN traditional territory. NHCN supports the environmentally responsible development of the Minago Project, and the creation of jobs and economic prosperity that in turn will flow to the NHCN community as a whole.

For over three years, NHCN has worked to establish a cooperative, respectful and mutually beneficial long-term relationship with Flying Nickel. NHCN has been integral in moving the Minago Project forward. NHCN has worked throughout 2022 and 2023 with Flying Nickel and its environmental consultant to assist with the Province of Manitoba's consultation process, helped to organize multiple public and stakeholder meetings in Norway House, Grand Rapids and Moose Lake and invested directly in Flying Nickel.

NHCN has supported Flying Nickel as a nation with Aboriginal rights, as an environmental steward with provincial government insight, as a proximate community with capable employees, and as a shareholder with financing. However, recent developments and strategic decisions by Flying Nickel, particularly the proposed NV Merger, have raised significant concerns for NHCN. NHCN remains singularly focussed on moving the Minago Project forward. The Minago Project, most likely, will not receive any government support or approval without the full support of NHCN.

NV Merger Concerns

The Concerned Shareholders do not support the NV Merger for the following reasons:

1. Negative impact on job creation and economic prosperity

NHCN has an Impact and Benefit Agreement ("IBA") with Flying Nickel, which is crucial for fostering economic opportunities and job creation within NHCN. The nation is deeply concerned that if the NV Merger is approved, management of Flying Nickel will continue to be distracted from progressing the Minago Project. NHCN worries that the NV Merger will diminish the obligations of Flying Nickel set out in the IBA, adversely affecting the Minago Project's development, as well as the nation's economic future and social well-being.

2. Driver behind the NV Merger is liquidity for Nevada Vanadium Shareholders

The primary driver behind the NV Merger appears to be the liquidity benefits for Nevada Vanadium shareholders, rather than the strategic or financial benefits for Flying Nickel and its shareholders.

Contrary to Flying Nickel's assertions, the Concerned Shareholders believe that the NV Merger will not enhance trading liquidity. Nevada Vanadium and Flying Nickel were each spun out from Silver Elephant Mining Corp. on January 14, 2022, with a proposal to recombine these entities a mere 10 months later. The NV Merger seems to be more of a corporate reorganization for the appearance of progress rather than actual progress on development of the Minago Project or advancement of the profit-generation capabilities of Flying Nickel.

As of December 31, 2023, Flying Nickel had receivables from related parties (including Silver Elephant Mining Corp., Nevada Vanadium and Oracle Mining Corp.) totalling $1,800,000. The NV Merger will add unnecessary expenses to Flying Nickel's balance sheet, further straining Flying Nickel's financial health.

There are many common shareholders, directors and officers amongst Flying Nickel, Nevada Vanadium, Silver Elephant Mining Corp. and Oracle Mining Corp., and the interests of that select group are being placed ahead of the interests of Flying Nickel shareholders as a whole.

3. Flying Nickel's ability to move the Nevada Vanadium mine forward

The Concerned Shareholders believe that if the NV Merger is approved, Flying Nickel will be spread too thin across two early-stage assets. The reality is that the Flying Nickel shareholders are, and have been, disappointed with the lack of progress with the Minago Project. Another project in its infancy is well beyond Flying Nickel's current management's demonstrated capacity. Adding Nevada Vanadium to Flying Nickel's portfolio will require extensive capital to fund two exploration properties with different minerals in two different countries with minimal synergies. Flying Nickel has consistently shown a lack of focus moving the Minago Project forward and the Concerned Shareholders worry that this lack of focus will worsen with the addition of another mine located in another country.

4. Fairness opinions on the NV Merger are outdated

The fairness opinions supporting the NV Merger are as of October 6, 2022, and as such are outdated and do not reflect the current financial realities. The most significant factor is the basis of commodity price assumptions. Relying on these opinions is misleading and fails to provide an accurate and current assessment of the merger's impact.

5. Shareholder Value Decline and Shareholder Dilution

The day before the NV Merger was first announced, FN Shares closed at $0.195, and yesterday's closing price was $0.10, marking a 50% decline in value. As Nevada Vanadium is not a publicly traded company, no information has been provided in the 20 months since the announcement of the NV Merger in respect of its current value. In addition, Flying Nickel shareholders will be diluted by approximately 43%, while certain insiders who hold shares in both Flying Nickel and Nevada Vanadium will increase their shareholdings of the resulting company. The NV Merger benefits a select group of insiders, and is not in the best interests of Flying Nickel or its shareholders.

6. Irregular Behaviour and NV Merger Terms

It has taken the Flying Nickel management team 20 months to bring the NV Merger to Flying Nickel shareholders, an unprecedented period of time that has inhibited Flying Nickel's management from meaningfully considering alternative transactions. This is in part due to an off-market break fee of $2 million, representing approximately 23% of the Flying Nickel implied value as of May 24, 2024. In addition, in the week leading up to the record date for the Meeting, an insider from Nevada Vanadium swapped shares with an insider of Flying Nickel, which in turn lowered the number of FN Shares excluded from the majority of minority vote. Irregular actions like these erode the Concerned Shareholders' trust and confidence in Flying Nickel management, and the Concerned Shareholders do not believe the NV Merger will benefit the development of the Minago Project, Flying Nickel Shareholders, NHCN or its people.

Flying Nickel Slate Concerns

The Concerned Shareholders do not support the Flying Nickel Slate for the following reasons:

1. Mismanagement of Flying Nickel

Flying Nickel's troubled history with the Minago Project, including its failure to achieve projected outcomes, raises significant doubts about its capability to successfully manage Nevada Vanadium's Gibellini mine. The same management team, led by John Lee, is now proposing the NV Merger, despite a demonstrated lack of strategic planning, financial oversight and demonstrable successes.

Between December 2020 and December 2023, Flying Nickel raised a total of $10.5 million and spent $10.0 million. Of this spend, just $1.8 million was spent on exploration and drilling on the Minago Project, and a further $1.2 million was spent on a feasibility study which has never been released. Only 30% of the money raised was utilized to move the Minago Project forward while 70% was utilized for other purposes.6

2. Incomplete disclosure by Flying Nickel

Flying Nickel has failed to provide comprehensive and accurate disclosure to its shareholders, thereby preventing them from making fully informed decisions. The incomplete information about Flying Nickel's operations and financial status is unacceptable and undermines shareholder trust, particularly NHCN's.

Concerned Shareholders Nominees

Name and Province or State, and Country of Residence

Principal Occupation for the

Five Preceding Years

Number of FN Shares

Beneficially Owned, or

Controlled or Directed, Directly

or Indirectly

Neil Duboff7

Manitoba, Canada

Managing Partner, Duboff

Edwards Schachter Law Corp.

Nil

Andrew Strickland

Perth, Western Australia

Mining Executive, Projects and

Mergers & Acquisitions,

Blackstone,

Senior Study Manager GR

Engineering Services

Nil

Rhett Brans

Perth, Western Australia

Mining Executive / Non

Executive Director, Project

Development, Various ASX

mining companies

Nil

Scott Williamson

Perth, Western Australia

Managing Director & CEO, Blackstone

Nil

Concerned Shareholders Nominees – Biographies

Neil Duboff (Non Executive Director)

Neil Duboff is the Managing Partner of the Winnipeg-based law firm Duboff Edwards Haight & Schachter and has been practising law since 1985. His practice is focused primarily in the areas of corporate structuring, acquisitions and financing and Aboriginal law with an emphasis on taxation, trusts, Governments and Associations. Prior to this, Mr. Duboff was a bank manager at the Bank of Montreal from 1979 to 1984. He holds a Bachelor of Arts in Economics and a Bachelor of Law from the University of Manitoba. Mr. Duboff acts for many First Nations across the country, as well as banks, First Nations development companies and First Nations businesses.

Andrew Strickland (Non Executive Director)

Andrew Strickland is a mining executive with over 20 years experience. Mr. Strickland is a University of Western Australia MBA graduate, with degrees in Chemical Engineering and Extractive Metallurgy. He is a Fellow of the Australian Institute of Mining and Metallurgy. He is currently a Non-executive Director of Corazon Mining Limited an ASX-listed nickel developer which owns the Lynn Lake deposit in northern Manitoba. Mr. Strickland has extensive experience in developing mining operations around the and has strong connections for accessing capital markets and potential strategic investors from Japan and South Korea. Mr. Strickland is very familiar with the Minago Project, and has strong connections through Manitoba and Canada. He was responsible for the recent Blackstone Wabowden project option deal.

Mr. Strickland would step back from his current role as an Executive at Blackstone to focus on leading the development of the Minago Project.

Rhett Brans (Independent Non-Executive Director)

Rhett Brans is an experienced director and civil engineer with over 50 years' experience in project developments. He is currently a Non-Executive Director of Carnavale Resources Ltd and AVZ Minerals Ltd. Previously, Mr. Brans was a founding director of Perseus Mining Limited and served on the boards of Australian Potash, Syrah Resources Limited, Tiger Resources Limited and Monument Mining Limited.

Throughout his career, Mr. Brans has been involved in the management of feasibility studies and the design and construction of mineral treatment plants across a range of commodities and geographies including gold in Ghana, copper in Australia and the DRC and graphite in Mozambique. He has extensive experience as an owner's representative for several successful mine feasibility studies and project developments.

Scott Williamson (Non-Executive Director)

Scott Williamson is a mining engineer with a Commerce degree from the West Australian School of Mines and Curtin University. Mr. Williamson has over 20 years' experience in financing, developing and operating mines across multiple jurisdictions. Mr. Williamson has been the Managing Director and CEO of Blackstone since 2017 and during this time has established strategic relationships within the Lithium-ion battery and electric vehicle supply chain. Mr. Williamson is currently a Non-Executive Director of Leeuwin Metals Limited, an ASX-listed nickel and lithium developer in Manitoba. Mr. Williamson has experience in mining engineering, corporate finance and investor relations offering a unique blend of both corporate and technical capabilities.

Boards of Other Reporting Issuers on Which the Concerned Shareholders Nominees Serve

Concerned Shareholders Nominee	Boards of Other Reporting Issuers on Which the Concerned Shareholders Nominee Serves
Neil Duboff	N/A
Andrew Strickland	Corazon Mining Limited (ASX:CZN)
Rhett Brans	Carnavale Resources Ltd (ASX:CAV) AVZ Minerals Ltd. (ASX:AVZ)
Scott Williamson	Blackstone Minerals Ltd (ASX:BSX) Leeuwin Metals Ltd (ASX:LM1)

Based on information provided to the Concerned Shareholders by each respective Concerned Shareholders Nominee, all of the nominees are independent of Flying Nickel.

Based on information provided to the Concerned Shareholders by each respective Concerned Shareholders Nominee, none of the Concerned Shareholders Nominees: (a) is, at the date hereof, or has been within the previous 10 years, a director, chief executive officer or chief financial officer of any company (including Flying Nickel) that (i) was subject to an a cease trade order, an order similar to a cease trade order or an order that denied the relevant company access to any exemption under securities legislation, that was in effect for a period of more than 30 consecutive days (each, an "order") that was issued while such Concerned Shareholders Nominee was acting in the capacity as director, chief executive officer or chief financial officer, or (ii) was subject to an order that was issued after such Concerned Shareholders Nominee ceased to be a director, chief executive officer or chief financial officer and which resulted from an event that occurred while such Concerned Shareholders Nominee was acting in the capacity as director, chief executive officer or chief financial officer; (b) is, at the date hereof, or has been within the previous 10 years, a director or executive officer of any company (including Flying Nickel) that, while such Concerned Shareholders Nominee was acting in that capacity, or within a year of such Concerned Shareholders Nominee ceasing to act in that capacity, became bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency or was subject to or instituted any proceedings, arrangement or compromise with creditors or had a receiver, receiver manager or trustee appointed to hold its assets; or (c) has within the previous 10 years, become bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency, or become subject to or instituted any proceedings, arrangement or compromise with creditors, or had a receiver, receiver manager or trustee appointed to hold the assets of such Concerned Shareholders Nominee.

Based on information provided to the Concerned Shareholders by each respective Concerned Shareholders Nominee, none of the Concerned Shareholders Nominees has been subject to: (a) any penalties or sanctions imposed by a court relating to securities legislation or by a securities regulatory authority or has entered into a settlement agreement with a securities regulatory authority; or (b) any other penalties or sanctions imposed by a court or regulatory body that would likely be considered important to a reasonable securityholder in deciding whether to vote for a Concerned Shareholder Nominee. Based on information provided to the Concerned Shareholders by each respective Concerned Shareholders Nominee, none of the Concerned Shareholders Nominees or their respective associates or affiliates has: (a) any material interest, direct or indirect, in any transaction since the commencement of Flying Nickel's most recently completed financial year or in any proposed transaction which has materially affected or would materially affect Flying Nickel or any of its subsidiaries; or (b) any material interest, direct or indirect, by way of beneficial ownership of securities or otherwise, in any matter to be acted on at the Meeting, other than the removal of certain incumbent directors and the election of directors to fill the vacancies created by such removals.

How to Vote AGAINST the NV Merger and FOR the Concerned Shareholders Nominees

You can vote for the Concerned Shareholders Nominees using the form of proxy or voting instruction form that you received from Flying Nickel with your materials for the Meeting by:

inserting the name "Michael Ly" or "Jamie Kagan" (the Concerned Shareholders' Representatives) as your proxyholder in the appointee line on the reverse side of the proxy form or voting instruction form; and

properly signing, dating and returning your form of proxy or voting instruction form by carefully following the instructions provided on your form of proxy or voting instruction form. Please do not check any boxes.

To ensure that your vote is received please vote well in advance of the proxy vote deadline on 10:30 a.m. (Pacific Standard Time) on July 8, 2024 or 48 hours (other than a Saturday, Sunday or holiday) prior to the Meeting (or any earlier deadline indicated by your broker).

Flying Nickel Shareholders that would like to vote "FOR" the Concerned Shareholders Nominees should contact the Concerned Shareholders' proxy solicitation agent, Carson Proxy, at North American Toll-free: 1-888-511-1228, local or text: 416-804-0825 or by email at christine@carsonproxy.com.

If you appoint the Michael Ly or Jamie Kagan as your proxyholder with discretionary authority for the election of directors and in respect of the NV Merger, your FN Shares will be voted as follows:

FOR the Number of Directors (to be fixed at four).

WITHOLD the Election of the Flying Nickel Slate – FOR the election of the Concerned Shareholders Nominees.

FOR the Appointment of Auditors.

FOR the Incentive Plan.

AGAINST the Arrangement Resolution.

AGAINST the Name Change Resolution.

Even if you have already voted for nominees on the Flying Nickel Slate and for the NV Merger, you can change your vote by executing another form of proxy bearing a later date and depositing it prior to 10:30 a.m. (Pacific Standard Time) on July 8, 2024. For assistance with voting or changing your vote, please contact the Concerned Shareholders' proxy solicitation agent, Carson Proxy, at North American Toll-free: 1-888-511-1228, local or text: 416-804-0825 or by email at christine@carsonproxy.com.

Information in Support of Public Broadcast Solicitation

The following information is provided in accordance with Canadian corporate and securities laws applicable to public broadcast solicitations. The Concerned Shareholders are relying on the exemption under section 9.2(4) of National Instrument 51-102 – Continuous Disclosure Obligations ("NI 51-102") to make this public broadcast solicitation.

This solicitation is being made by the Concerned Shareholders and not by or on behalf of the management of Flying Nickel. The head and registered office address of Flying Nickel is Suite 1610 – 409 Granville Street Vancouver, BC V6C 1T2. The Concerned Shareholders do not have any associate or affiliate assisting with this solicitation. The Concerned Shareholders have filed this press release containing the information required by section 9.2(4)(c) of NI 51-102 on Flying Nickel's company profile on SEDAR+ at www.sedarplus.ca.

The Concerned Shareholders may solicit proxies in reliance upon the public broadcast exemption to the solicitation requirements under applicable Canadian corporate and securities laws, conveyed by way of public broadcast, including through press releases, speeches or publications, and by any other manner permitted under applicable Canadian laws. All costs incurred for the solicitation will be borne by the Concerned Shareholders.

The Concerned Shareholders have retained the services of Carson Proxy Advisors to act as strategic proxy solicitation advisor and to facilitate communication with shareholders. In connection with these services, the Concerned Shareholders will pay fees of up to $60,000, plus certain out-of-pocket expenses.

A Flying Nickel shareholder who has given a proxy has the power to revoke it. If a Flying Nickel shareholder who has given a proxy attends the Meeting at which the proxy is to be voted, such Flying Nickel shareholder, may revoke the proxy and vote at the Meeting. In addition to revocation in any other manner permitted by law, a proxy may be revoked by an instrument in writing signed by the Flying Nickel shareholder or his or her attorney authorized in writing, or, if the Flying Nickel shareholder is a corporation, under its corporate seal and signed by a duly authorized officer or attorney for the corporation, and deposited at the registered office of Flying Nickel at any time up to and including the last day (other than Saturdays, Sundays and statutory holidays in the Province of British Columbia) preceding the day of the Meeting at which the proxy is to be used, or any adjournments or postponements thereof.

The Concerned Shareholders are shareholders of Flying Nickel. With the exception of the foregoing, to the knowledge of the Concerned Shareholders, no Concerned Shareholder nor any associates or affiliates of any Concerned Shareholder, has any material interest, direct or indirect, by way of beneficial ownership of securities or otherwise, in the NV Merger, the Flying Nickel Slate or any other matter to be acted upon at the Meeting.

This press release is being issued pursuant to National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues, which requires a report to be filed under Flying Nickel's profile on SEDAR+ profile at www.sedarplus.ca containing additional information respecting the foregoing matters. To receive a copy of the report filed in respect of the above matters, please contact Jamie Kagan at jk@tdslaw.com.

ABOUT BLACKSTONE

Blackstone Minerals Limited (ASX: BSX) is a Western Australian based mining company focused on building an integrated battery metals processing business in Vietnam that produces NCM precursor products for the globally growing lithium-ion battery industry by developing the Ta Khoa Nickel-Copper-PGE Project in Vietnam. Blackstone will produce the lowest emission precursor as verified by Minviro and the Nickel Institute. The existing business has a modern nickel mine built to Australian standards, which successfully operated as a mechanised underground nickel mine from 2013 to 2016. This will be complemented by a larger concentrator, refinery and precursor facility to support integrated production in-country. Most recently, Blackstone executed an option agreement to acquire the Wabowden Nickel project in Manitoba, Canada, giving the company an opportunity to produce Inflation Reduction Act compliant critical mineral products from the Ta Khoa Refinery.

ABOUT SPARTA

Sparta AG is a publicly-owned investment manager based in Germany, listed on the Basic Board of the Frankfurt Stock Exchange. Sparta buys and sells listed and unlisted securities and other financial instruments worldwide. Sparta has the great advantage of not being confronted with cash outflows at the "wrong" time due to its financing structure. This means Sparta is not "forced" to sell investments in bad market phases. This means that Sparta does not see the volatility and illiquidity of securities solely as a risk, but also as an opportunity. Sparta's portfolio of investments is typically very concentrated. Sparta rarely holds more than 20 or 25 different investments and often more than 50% of total assets are invested in the five largest positions – the core positions. This is done according to the best opportunity-risk profile. Long-term capital preservation and a positive overall return are the main focus.

ABOUT NHCN

Norway House Cree Nation is a dynamic First Nation community in northern Manitoba, with 8,700 members and significant population growth. Strategically located, 800 Km north of Winnipeg at the top of Lake Winnipeg, NHCN serves as an economic hub for neighbouring communities. It has a progressive Leadership that is focused on education, economic development and employment. It has been working with the Province of Manitoba and other First Nations to move the Minago Project forward.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking information within the meaning of applicable securities laws. In general, forward-looking information refers to disclosure about future conditions, courses of action, and events. Forward-looking information in this press release may include, but is not limited to, statements of the Concerned Shareholders regarding (i) the Meeting, including the intention of the Concerned Shareholders to solicit proxies in connection with the Meeting, (ii) the proposed reconstitution of the Board, and (iii) matters relating to Flying Nickel, including its business, operations and financial condition. All statements contained in this press release that are not clearly historical in nature or that necessarily depend on future events are forward‐looking, and the use of any of the words "anticipates", "believes", "expects", "intends", "plans", "will", "would", and similar expressions are intended to identify forward-looking statements. These statements are based on current expectations of the Concerned Shareholders and currently available information. Forward looking statements are not guarantees of future performance, involve certain risks and uncertainties that are difficult to predict, and are based upon assumptions as to future events that may not prove to be accurate. The Concerned Shareholders undertake no obligation to update publicly or revise any forward looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable securities legislation.

	_____________________________________________________
	1 Mr. Rondeau was a former representative of NHCN on the board of Flying Nickel.
	2 Mr. Duboff is a current board member of Flying Nickel and is the nominee of NHCN. He is also the only Concerned Shareholders Nominee with an existing position within Flying Nickel.
	3 Mr. Rondeau has ownership or control or direction over 262,000 FN Shares representing approximately 0.3% of the FN Shares.
	4 Blackstone has ownership or control or direction over 6,551,844 FN Shares representing approximately 7.4% of the FN Shares.
	5 Sparta has ownership or control or direction over 6,901,500 FN Shares representing approximately 7.8% of the FN Shares.
	6 Based on Flying Nickel's quarterly and annual reports.
	7 Mr. Duboff is a current board member of Flying Nickel and is the nominee of NHCN. He is also the only Concerned Shareholders Nominee with an existing position within Flying Nickel.

SOURCE Concerned Shareholders of Flying Nickel Mining Corp.

Cision

View original content: http://www.newswire.ca/en/releases/archive/June2024/27/c7130.html

Wallbridge Mining Company Limited

TORONTO, June 27, 2024 (GLOBE NEWSWIRE) — Wallbridge Mining Company Limited (TSX:WM, OTCQB:WLBMF) (“Wallbridge” or the “Company”) held its Annual Meeting of Shareholders (the “Meeting”) on June 26, 2024.

A total of 375,770,677 shares or 36.98% of the outstanding shares of the Company were represented at the Meeting. All of the matters submitted to the shareholders for approval as set out in the Company's notice of meeting and management information circular dated May 17, 2024 (“MIC”) were approved by the requisite majority of votes cast at the Meeting.

Voting on the following matters, as described in the MIC, were as follows:

To Set the Number of Directors at Seven (7)

Votes For		Votes Against
Number	Percent	Number	Percent
327,860,364	87.25%	47,910,313	12.75%

Election of Directors for the Ensuing Year

The following directors were elected until the next annual meeting of shareholders or until their successors are otherwise duly elected or appointed: Brian Penny, Janet Wilkinson, Michael Pesner, Anthony Makuch, Jeffery Snow, Danielle Giovenazzo and Brian Christie.

	Votes For		Votes Withheld
	Number	Percent	Number	Percent
Brian Penny	307,933,143	87.647%	43,398,663	12.353%
Janet Wilkinson	325,213,100	92.566%	26,118,706	7.434%
Michael Pesner	289,152,398	82.302%	62,179,408	17.698%
Anthony Makuch	343,276,508	97.707%	8,055,298	2.293%
Jeffery Snow	345,531,527	98.349%	5,800,279	1.651%
Danielle Giovenazzo	289,089,828	82.284%	62,241,978	17.716%
Brian Christie	344,870,421	98.161%	6,461,385	1.839%

Appointment of KPMG LLP as Auditor of the Corporation for the ensuing year and authorizing the Directors to fix their remuneration

Votes For		Votes Withheld
Number	Percent	Number	Percent
373,296,489	99.342%	2,474,188	0.658%

About Wallbridge Mining

Wallbridge is focused on creating value through the exploration and sustainable development of gold projects along the Detour-Fenelon Gold Trend in Québec’s Northern Abitibi region while respecting the environment and communities where it operates.

Wallbridge’s most advanced projects, Fenelon Gold (“Fenelon”) and Martiniere Gold (“Martiniere”) incorporate a combined 3.05 million ounces of indicated gold resources and 2.35 million ounces of inferred gold resources. Fenelon and Martiniere are located within an 830 square kilometre exploration land package controlled by Wallbridge.

Wallbridge has reported a positive Preliminary Economic Assessment (“PEA”) at Fenelon that estimates average annual gold production of 212,000 ounces over 12 years.

Wallbridge also holds a 15.79% interest in the common shares of NorthX Nickel Corp. (formerly “Archer Exploration”) as a result of the sale of the Company’s portfolio of nickel assets in Ontario and Québec. For further information please visit the Company’s website at https://wallbridgemining.com/ or contact:

Wallbridge Mining Company Limited

Brian Penny, CPA, CMAChief Executive OfficerEmail: bpenny@wallbridgemining.comM: +1 416 716 8346

Victoria Vargas, B.Sc. (Hon.) Economics, MBACapital Markets AdvisorEmail: vvargas@wallbridgemining.comM: +1 289 242 3599

Cautionary Note Regarding Forward-Looking InformationThe information in this document may contain forward-looking statements or information (collectively, “FLI”) within the meaning of applicable Canadian securities legislation. FLI is based on expectations, estimates, projections and interpretations as at the date of this document.

All statements, other than statements of historical fact, included herein are FLI that involve various risks, assumptions, estimates and uncertainties. Generally, FLI can be identified by the use of statements that include, but are not limited to, words such as “seeks”, “believes”, “anticipates”, “plans”, “continues”, “budget”, “scheduled”, “estimates”, “expects”, “forecasts”, “intends”, “projects”, “predicts”, “proposes”, "potential", “targets” and variations of such words and phrases, or by statements that certain actions, events or results “may”, “will”, “could”, “would”, “should” or “might”, “be taken”, “occur” or “be achieved.”

FLI in this document may include, but is not limited to: statements regarding the results of the PEA; the potential future performance of the Common Shares; future drill results; the Company’s ability to convert inferred resources into measured and indicated resources; environmental matters; stakeholder engagement and relationships; parameters and methods used to estimate the MRE’s at Fenelon and Martiniere (collectively the “Deposits”); the prospects, if any, of the Deposits; future drilling at the Deposits; and the significance of historic exploration activities and results.

FLI is designed to help you understand management’s current views of its near- and longer-term prospects, and it may not be appropriate for other purposes. FLI by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such FLI. Although the FLI contained in this document is based upon what management believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders and prospective purchasers of securities of the Company that actual results will be consistent with such FLI, as there may be other factors that cause results not to be as anticipated, estimated or intended, and neither the Company nor any other person assumes responsibility for the accuracy and completeness of any such FLI. Except as required by law, the Company does not undertake, and assumes no obligation, to update or revise any such FLI contained in this document to reflect new events or circumstances. Unless otherwise noted, this document has been prepared based on information available as of the date of this document. Accordingly, you should not place undue reliance on the FLI, or information contained herein.

Furthermore, should one or more of the risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in FLI.

Assumptions upon which FLI is based, without limitation, include: the results of exploration activities, the Company’s financial position and general economic conditions; the ability of exploration activities to accurately predict mineralization; the accuracy of geological modelling; the ability of the Company to complete further exploration activities; the legitimacy of title and property interests in the Deposits; the accuracy of key assumptions, parameters or methods used to estimate the MREs and in the PEA; the ability of the Company to obtain required approvals; geological, mining and exploration technical problems; failure of equipment or processes to operate as anticipated; the evolution of the global economic climate; metal prices; foreign exchange rates; environmental expectations; community and non-governmental actions; and, the Company’s ability to secure required funding. Risks and uncertainties about Wallbridge's business are discussed in the disclosure materials filed with the securities regulatory authorities in Canada, which are available at www.sedarplus.ca.

Cautionary Notes to United States InvestorsWallbridge prepares its disclosure in accordance with NI 43-101 which differs from the requirements of the U.S. Securities and Exchange Commission (the "SEC"). Terms relating to mineral properties, mineralization and estimates of mineral reserves and mineral resources and economic studies used herein are defined in accordance with NI 43-101 under the guidelines set out in CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the Canadian Institute of Mining, Metallurgy and Petroleum Council on May 19, 2014, as amended. NI 43-101 differs significantly from the disclosure requirements of the SEC generally applicable to US companies. As such, the information presented herein concerning mineral properties, mineralization and estimates of mineral reserves and mineral resources may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the U.S. federal securities laws and the rules and regulations thereunder.

Wallbridge Mining Company Limited

TORONTO, June 24, 2024 (GLOBE NEWSWIRE) — Wallbridge Mining Company Limited (TSX: WM, OTCQB:WLBMF) (“Wallbridge” or the “Company”) today announced an agreement (the “Agreement”) to engage the services of ICP Securities Inc. (“ICP”) to provide automated market making services, including the use of its proprietary algorithm, ICP Premium™, in compliance with the policies and guidelines of the TSX Exchange and other applicable legislation.

Under terms of the Agreement, ICP will receive a monthly fee, with there being no performance-based factors. No stock options or other forms of equity-based compensation will be granted in connection with the Agreement. ICP and its clients may choose to acquire an interest in the securities of the Company in the future.

ICP is an arm's length party to the Company. ICP's market making activity will be primarily aimed at correcting temporary imbalances in the supply and demand of the Company's shares. ICP will be responsible for the costs it incurs in buying and selling the Company's shares, and no third party will be providing funds or securities for the market making activities.

ICP Securities Inc.

ICP is a Toronto based CIRO dealer-member that specializes in automated market making and liquidity provision, as well as having a proprietary market making algorithm, ICP Premium™, that enhances liquidity and quote health. Established in 2023, with a focus on market structure, execution, and trading, ICP has leveraged its own proprietary technology to deliver high quality liquidity provision and execution services to a broad array of public issuers and institutional investors.

Annual General Meeting

Wallbridge’s annual meeting of the shareholders will be held in person at the TMX Market Centre, 120 Adelaide St. West, Toronto, Ont. M5H 1S3 and via live webcast at https://virtual-meetings.tsxtrust.com/en/1615 on June 26, 2024, at the hour of 4:30 p.m. (Eastern time) (the “Meeting”). To access the live webcast of the Meeting, shareholders will need to open the following link: https://virtual-meetings.tsxtrust.com/en/1615. The password for the live webcast is wallbridge2024 (case sensitive).

About Wallbridge Mining

Wallbridge has reported a positive Preliminary Economic Assessment (“PEA”) at Fenelon that estimates average annual gold production of 212,000 ounces over 12 years.

Wallbridge Mining Company Limited

Brian Penny, CPA, CMAChief Executive OfficerEmail: bpenny @wallbridgemining.comM: +1 416 716 8346	Victoria Vargas, B.Sc. (Hon.) Economics, MBACapital Markets AdvisorEmail: vvargas@wallbridgemining.comM: +1 289 242 3599

Cautionary Note Regarding Forward-Looking Information

The information in this document may contain forward-looking statements or information (collectively, “FLI”) within the meaning of applicable Canadian securities legislation. FLI is based on expectations, estimates, projections and interpretations as at the date of this document.

Cautionary Notes to United States Investors

Wallbridge prepares its disclosure in accordance with NI 43-101 which differs from the requirements of the U.S. Securities and Exchange Commission (the "SEC"). Terms relating to mineral properties, mineralization and estimates of mineral reserves and mineral resources and economic studies used herein are defined in accordance with NI 43-101 under the guidelines set out in CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the Canadian Institute of Mining, Metallurgy and Petroleum Council on May 19, 2014, as amended. NI 43-101 differs significantly from the disclosure requirements of the SEC generally applicable to US companies. As such, the information presented herein concerning mineral properties, mineralization and estimates of mineral reserves and mineral resources may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the U.S. federal securities laws and the rules and regulations thereunder.

We recently compiled a list of the 8 Best Rare Earth Stocks and ETFs. In this article, we are going to take a look at where Teck Resources Limited (NYSE:TECK) stands against the other rare earth stocks and ETFs.

Rare earth elements (REEs), which refers to 17 metals that are similar chemically, are surprisingly abundant in Earth's crust. However, their dispersion and geochemical properties make them difficult and expensive to extract, leading to them being called "rare."

REEs are important for a vast range of technologies, earning them the nickname "vitamins of modern industry." Apart from being irreplaceable for clean energy and consumer electronics production, REEs are also strategic for defense and aerospace engineering, the production of aircraft, missiles, satellites, and communication systems.

Hence, it is no wonder that the global rare earth metals market is valued at an estimated $5.65 billion in 2024. Analysts project this market to experience steady growth, reaching $8.63 billion by 2031. This is equivalent to a compound annual growth rate (CAGR) of 6.2% over this period, indicating a promising future for the industry.

China has been dominating the rare earth metals market for decades producing a staggering 240,000 metric tons last year, over five times more than its closest competitor, the United States, according to US Geological Survey data. China further maintains its control by processing around 90% of the world's rare earths into permanent magnets used in various technologies. In 2022, China accounted for 70% of global production of REEs. This dominance stems from a combination of factors, including historical geological exploration efforts, favorable mining conditions, and government support for the industry.

Brazil, along with other Western countries, is currently working towards breaking China’s dominance of this industry. Brazil has advantages like low labor costs, clean energy, and established regulations. However, challenges include low rare earth prices which have gone down 70%, technical difficulties, and getting funding. Despite these challenges, Brazil is making progress with its first mine in operation and increased government support for the industry. To jumpstart its rare earth industry, the Brazilian government allocated 1 billion reais ($194.53 million) in February to fund strategic mineral projects.

Other countries are also working towards diversifying the supply chain. In recent years, the United States has sought to mitigate risks related to the REEs’ supply chain. This includes restarting domestic mining operations, like the Mountain Pass site in California, and building processing facilities to avoid reliance on China. This objective of supply chain diversification has also led the US to secure deals with Vietnam on minerals and semiconductors.

Similar to the United States, the European Union (EU) is also actively promoting domestic extraction projects in countries such as Sweden, Finland, Spain, and Serbia. This is part of the EU's efforts to enhance its self-sufficiency in critical minerals, including rare earth elements.

Our Methodology

To shortlist the best rare earth stocks, we relied on Insider Monkey's database of 919 hedge funds as of Q1 2024 to analyze the hedge fund sentiment for each stock. We picked the rare earth stocks with the highest number of hedge fund investors. Furthermore, we included two of the best rare earth ETFs, chosen for their impressive 3-year returns. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

A close up of an automated machine processing other Industrial Metals & Mining resources.

Teck Resources Limited (NYSE:TECK)

Number of Hedge Fund Holders: 60

Teck Resources Limited (NYSE:TECK), a Canadian diversified mining company founded in 1913, engages in the exploration and production of natural resources across continents.

The company primarily focuses on steelmaking coal, copper, zinc, and energy. In addition to its main commodities, Teck Resources Limited (NYSE:TECK) also produces lead, silver, molybdenum, and various other metals, chemicals, and fertilizers. The company is also involved in gold exploration.

Teck Resources Limited (NYSE:TECK)'s Q1 2024 earnings call revealed that the adjusted EBITDA came in at $1.7 billion, driven by strong steelmaking coal and copper prices. Copper sales volumes increased, and steelmaking coal prices remained high compared to the same period last year. Revenue reached $3.98 billion, up 5.36% from Q1 2023.

Analysts have a positive outlook for Teck Resources Limited (NYSE:TECK), with an average 12-month price target of $57.3. This represents a potential upside of over 20% from the current price levels. Price forecasts range from a low of $51.63 to a high of $66.9. Furthermore, 11 out of 12 analysts have rated the stock as a “Buy.”

Here’s what Greenlight Capital said about Teck Resources Limited (NYSE:TECK) in its Q1 2024 investor letter:

“Finally, we established a medium-sized macro position to benefit from higher copper prices. Long-time partners may recall that in 2021 we presented Teck Resources Limited (NYSE:TECK) at the Sohn Investment Conference. At the time, our thesis was based on a combination of being bullish on copper and believing that TECK was about to exit the penalty box after a multi-year investment in a new copper mine that was on the brink of finally coming online. Back then, TECK traded at C$31.09. Based on copper at $4.50 a pound, we thought the stock was undervalued by half. It has since doubled (and dramatically outperformed copper peer Freeport-McMoRan) and, over time, we have reduced the position into strength.

As we showed on this slide from our 2021 presentation, our thesis was that after several new mines, including TECK’s, there would not be new supply available in the second half of this decade.

Time has passed, the new mines have come online and the anticipated gap between supply and demand is likely to open up in the next year. While we still believe TECK is undervalued should copper prices rise, it is less undervalued than it once was. Our thesis now is that copper supply is about to fall short of demand, forcing prices substantially higher. Once again, we think the best way to invest in that thesis is the most direct way – in this case through options on copper futures.”

Overall TECK ranks 2nd on our list of the best rare earth stocks and ETFs to buy. You can visit 8 Best Rare Earth Stocks and ETFs to see the other rare earth stocks and ETFs that are on hedge funds’ radar. While we acknowledge the potential of TECK as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than TECK but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

Disclosure: None. This article is originally published at Insider Monkey.

WHITE ROCK, BC / ACCESSWIRE / June 20, 2024 / Honey Badger Silver Inc. (TSXV:TUF)(OTCQB:HBEIF) ("Honey Badger" or the "Company") believes it has identified a "Snowline-style" geologic target at its Plata Project, located adjacent to Snowline Gold Corp.'s major discovery in the Tintina Gold Belt of the Yukon Territory.

In a news release dated March 5, 2024, Honey Badger announced that it was increasing its land position at Plata to cover a geophysical anomaly (magnetic low), interpreted as a possible intrusive source of high-grade Plata silver & base metal mineralization. In a news release and webinar dated March 7, 2024, the company discussed in detail the theory that Plata fits the Reduced Intrusive zonation model defined at Snowline's Rogue Project, with the critical link provided by discovery of intrusive-hosted Type IV veins during the 2023 field season. The Company believes these new leases extend to prospective areas identified by combining this model with existing geophysical data.

Honey Badger has engaged ExploreTech (www.exploretech.ai) to analyze geophysical data at Plata to refine the highest-potential targets. ExploreTech is an innovative geoscience computing company founded by Stanford alumni geophysicist Alex Miltenberger PhD and geologist Tyler Hall PhD. ExploreTech uses innovative data interpretation methods including proprietary xFlare™ technology to interpret geophysical data in conjunction with geologic data. This methodology has been successful in siting drill holes which intersected mineralization in multiple geologic settings. At Plata, their work is expected to provide insight as to the possible shape, size, and location of a buried intrusion which would represent a significant mineralized target.

The Company's CEO, Dorian L. (Dusty) Nicol, commented:

"We interpret Plata as being related to the same style of mineralization as Snowline Gold Corp.'s Rogue Project. The work that ExploreTech will do for us using proprietary cloud-based computing technology will help identify potential targets related to the buried intrusion believed to be the cause of the geophysical anomaly covered by our recently acquired claims. We will receive the results of this analysis before beginning summer field work at Plata in July. The objective of this year's field program is to identify drill targets with a program of geologic mapping and sampling focusing on the intrusive-hosted veins discovered in 2023. We now interpret the ‘smoke' represented by high-grade silver mineralization at surface as coming from a large ‘fire' that is not far away. The upcoming work will help us to vector in that direction. Engaging ExploreTech is also another illustration of Honey Badger's commitment to using innovative concepts to cost-effectively advance projects and create asset value."

Plata is a large, intensely mineralized property with significant historic production and silver occurrences of exceptionally high grade. When operating in the 1980s, mined ore was sufficiently high grade to justify being flown to Idaho for processing. Records indicate yield of 9,020 kg (290,000 oz) of silver from a reported 2,041 tonnes of hand sorted material, equivalent to a recovered silver grade of approximately 4,420 grams per tonne (g/t) silver. There are 32 known silver occurrences at Plata with grades up to 19,000 g/t silver and 78 g/t gold, plus extensive un-drilled base metals geochemical anomalies.

Plata benefits from strategic infrastructure, hosting the only airstrip in the area, which also provides access to the Snowline Gold project. The Plata Access Track, while not entirely controlled by Honey Badger, is the only surface link. The district is part of the Tombstone Gold Belt, which includes Sitka Gold Corp., Victoria Gold Corp., and Snowline Gold Corp., and is being recognized as an area of rich mineral endowment and tremendous exploration potential. Plata is in the center of this rapidly emerging region.

Initial exploration work at Plata confirmed the presence of high-grade silver veins at surface and exploration was driven by analogies to the rich Keno Hill Silver Mine in the Yukon, one of the highest-grade silver deposits in the world, now being operated by Hecla Mining. While the analogy to Keno Hill remains valid, the Company in recent months has completed a re-interpretation of data which led to the recognition of Plata as a possibly part of a larger "Snowline-style" mineralized system. This adds the potential for a large gold deposit at Plata in addition to known high-grade silver and base metals.

Location map:

Intrusive-hosted veins:

About Honey Badger Silver Inc.

Honey Badger Silver is a mining consolidation, roll-up, development, and holding company that has assembled a remarkable portfolio from a modest capital base over the past three years. The company is led by a highly experienced leadership team with a track record of value creation backed by a skilled technical team. Our projects are located in areas with a long history of mining, including the Sunrise Lake project with a historic resource of 12.8 Moz of silver (and 201.3 million pounds of zinc) Indicated and 13.9 Moz of silver (and 247.8 million pounds of zinc) Inferred (1)(3) located in the Northwest Territories and the Plata high grade silver project located 165 km east of Yukon's prolific Keno Hill and adjacent to Snowline Gold's Rogue discovery. The Company's Clear Lake Project in the Yukon Territory has a historic resource of 5.5 Moz of silver and 1.3 billion pounds of zinc (2)(3). The Company also has a significant land holding at the Nanisivik Mine Area located in Nunavut, Canada that produced over 20 Moz of silver between 1976 and 2002 (2,3). A qualified person has not done sufficient work to classify the foregoing historic resources as current mineral resources and the Company is not treating the estimate as a current mineral resource. The historic resource estimates cannot be relied upon. Additional work, including verification drilling / sampling, will be required to verify the estimate as a current mineral resource.

Sunrise Lake 2003 RPA historic resource: Indicated 1.522 million tonnes grading 262 grams/tonne silver, 6.0% zinc, 2.4% lead, 0.08% copper, and 0.67 grams/tonne gold and Inferred 2.555 million tonnes grading 169 grams/tonne silver, 4.4% zinc, 1.9% lead, 0.07% copper, and 0.51 grams/tonne gold.

Clear Lake 2010 SRK historic Resource: Inferred 7.76 million tonnes grading 22 grams/tonne silver, 7.6% zinc, and 1.08% lead.

Geological Survey of Canada, 2002-C22, "Structural and Stratigraphic Controls on Zn-Pb-Ag Mineralization at the Nanisivik Mississippi Valley type Deposit, Northern Baffin Island, Nunavut; by Patterson and Powis."

ON BEHALF OF THE BOARD

Dorian L. (Dusty) Nicol, CEO

For more information please visit our website www.honeybadgersilver.com or contact Ms. Michelle Savella for Investor Relations | msavella@honeybadgersilver.com | +1 (604) 828-5886.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-Looking Information

This news release contains "forward-looking information" within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates, projections and interpretations as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, interpretations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "interpreted", "management's view", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking information and are intended to identify forward-looking information. This forward-looking information is based on reasonable assumptions and estimates of management of the Company at the time such assumptions and estimates were made, and involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Honey Badger to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.

Such factors include, but are not limited to, risks relating to capital and operating costs varying significantly from estimates; delays in obtaining or failures to obtain required governmental, environmental or other project approvals; uncertainties relating to the availability and costs of financing needed in the future; changes in equity markets; inflation; fluctuations in commodity prices; delays in the development of projects; other risks involved in the mineral exploration and development industry; and those risks set out in the Company's public documents filed on SEDAR+ (www.sedarplus.ca) under Honey Badger's issuer profile. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed timeframes or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

SOURCE: Honey Badger Silver Inc.

View the original press release on accesswire.com

Investors looking for stocks in the Mining – Non Ferrous sector might want to consider either Amerigo Resources (ARREF) or Southern Copper (SCCO). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Currently, both Amerigo Resources and Southern Copper are holding a Zacks Rank of # 1 (Strong Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. However, value investors will care about much more than just this.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

ARREF currently has a forward P/E ratio of 7.31, while SCCO has a forward P/E of 25.58. We also note that ARREF has a PEG ratio of 0.37. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SCCO currently has a PEG ratio of 1.18.

Another notable valuation metric for ARREF is its P/B ratio of 1.83. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, SCCO has a P/B of 11.09.

These metrics, and several others, help ARREF earn a Value grade of A, while SCCO has been given a Value grade of F.

Both ARREF and SCCO are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ARREF is the superior value option right now.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Amerigo Resources Ltd. (ARREF) : Free Stock Analysis Report

Southern Copper Corporation (SCCO) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

Amidst a backdrop of moderating inflation and shifting interest rate expectations in both the U.S. and Canada, investors are closely watching market movements for potential opportunities. In this environment, identifying undervalued stocks on the TSX can be particularly compelling, as these assets may present significant value in light of current economic conditions.

Top 10 Undervalued Stocks Based On Cash Flows In Canada

Name	Current Price	Fair Value (Est)	Discount (Est)
Calian Group (TSX:CGY)	CA$55.42	CA$110.42	49.8%
Calibre Mining (TSX:CXB)	CA$1.86	CA$3.14	40.8%
goeasy (TSX:GSY)	CA$187.26	CA$313.66	40.3%
Trisura Group (TSX:TSU)	CA$42.00	CA$80.18	47.6%
Viemed Healthcare (TSX:VMD)	CA$10.45	CA$20.08	48%
Endeavour Mining (TSX:EDV)	CA$28.61	CA$54.00	47%
Green Thumb Industries (CNSX:GTII)	CA$15.96	CA$27.20	41.3%
Jamieson Wellness (TSX:JWEL)	CA$27.98	CA$46.93	40.4%
Kits Eyecare (TSX:KITS)	CA$7.85	CA$14.24	44.9%
Capstone Copper (TSX:CS)	CA$9.33	CA$16.35	42.9%

Click here to see the full list of 24 stocks from our Undervalued TSX Stocks Based On Cash Flows screener.

We're going to check out a few of the best picks from our screener tool

Capstone Copper

Overview: Capstone Copper Corp. is a copper mining company with operations in the United States, Chile, and Mexico, and has a market capitalization of approximately CA$6.66 billion.

Operations: The company's revenue is primarily generated from its mining operations at Pinto Valley ($438.59 million), Mantoverde ($307.90 million), Mantos Blancos ($379.16 million), and Cozamin ($216.78 million).

Estimated Discount To Fair Value: 42.9%

Capstone Copper, trading at CA$9.33, significantly below the estimated fair value of CA$16.35, appears undervalued based on cash flow analysis. Recent financials show a reduction in net loss to US$4.84 million from US$20 million year-over-year with a slight earnings per share improvement. Despite recent equity offerings raising AUD 592.8 million and projected revenue growth at 18.1% annually—above the Canadian market average—the company's profitability is expected within three years, though past shareholder dilution raises concerns about future value per share retention.

TSX:CS Discounted Cash Flow as at Jun 2024Calibre Mining

Overview: Calibre Mining Corp. operates in the exploration, development, and mining of gold properties across Nicaragua, the United States, and Canada, with a market capitalization of approximately CA$1.40 billion.

Operations: The company generates revenue primarily from refined gold, totaling CA$566.68 million.

Estimated Discount To Fair Value: 40.8%

Calibre Mining, priced at CA$1.86, is undervalued per DCF valuation, suggesting a fair value of CA$3.14. Recent drill results from Valentine Gold Mine indicate significant untapped potential, enhancing its investment appeal despite a net loss this quarter. With expected annual earnings growth outpacing the Canadian market average significantly and revenue growth forecasts also strong, the stock shows promise although recent substantial insider selling and shareholder dilution could temper optimism.

TSX:CXB Discounted Cash Flow as at Jun 2024Energy Fuels

Overview: Energy Fuels Inc. operates in the United States, focusing on the extraction, recovery, recycling, exploration, permitting, evaluation, and sale of uranium mineral properties with a market capitalization of approximately CA$1.35 billion.

Operations: The company's revenue primarily stems from miscellaneous metals and mining activities, totaling CA$43.74 million.

Estimated Discount To Fair Value: 11.4%

Energy Fuels, trading at CA$8.41, is considered undervalued with a DCF-based fair value of CA$9.49. Analyst consensus suggests strong potential with a 77.2% upside and forecasts indicate robust revenue growth at 40.8% annually, outpacing the Canadian market's 7.3%. The recent strategic alliance to develop the Donald Project in Australia underscores its commitment to expanding its uranium and rare earth elements production, aligning with global clean energy needs despite recent shareholder dilution concerns.

TSX:EFR Discounted Cash Flow as at Jun 2024Next Steps

Unlock our comprehensive list of 24 Undervalued TSX Stocks Based On Cash Flows by clicking here.
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Contemplating Other Strategies?

Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include TSX:CS TSX:CXB and TSX:EFR.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Vancouver, British Columbia–(Newsfile Corp. – June 19, 2024) – Pacific Bay Minerals Ltd. (TSXV: PBM) ("Pacific Bay" or, the "Company") reports that the balance of its non-brokered private placement announced on March 18, 2024 and March 26, 2024 (the "Financing") will not be proceeding. The Company announced the closing of a First Tranche on May 13th, whereby the Company issued a total of 2,600,000 units (the "Hard Units") at $0.05 per Hard Unit, and 1,178,144 flow-through units (the "Flow-Through Units") at $0.07 per Flow-Through Unit, for aggregate total gross proceeds of $212,470.

About Pacific Bay Minerals Ltd.

Pacific Bay Minerals is a Canadian mineral exploration company engaged in the acquisition, exploration, and development of mining projects. Pacific Bay Minerals is focused on its 100% owned properties located in British Columbia: Sphinx Mountain Rare Earth Project near Dease Lake in northern BC and the Haskins Reed Polymetalic Project near Cassiar BC.

Pacific Bay Minerals Ltd.

Reagan Glazier, President and CEOreagan@pacificbayminerals.com(403) 815-6663

pacificbayminerals.com

This News Release contains forward-looking statements, which relate to future events. In some cases, you can identify forward-looking statements by terminology such as "will", "may", "should", "expects", "plans", or "anticipates" or the negative of these terms or other comparable terminology. All statements included herein, other than statements of historical fact, are forward-looking statements, including but not limited to the Company's expectations regarding, the closing date of the Financing, the use of proceeds of the Financing and other matters. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, level of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking-statements. While these forward-looking statements, and any assumptions upon which they are based, are made in good faith, and reflect the Company's current judgment regarding the direction of its business, actual results will may vary, sometimes materially, from any estimates, predictions, projections, assumptions, or other future performance suggestions herein. Except as required by applicable law, the Company does not intend to update any forward-looking statements to conform these statements to actual results.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/213553

Take oil and copper stocks, for example. The fund hit a multiyear high of $98, pushed by WTI crude oil’s 12% rise. Through late May, miners Freeport-McMoRan and Southern Copper rose 50% and 29%, respectively.

Key Insights

The considerable ownership by individual investors in Capstone Copper indicates that they collectively have a greater say in management and business strategy
A total of 25 investors have a majority stake in the company with 44% ownership
Insiders have sold recently

If you want to know who really controls Capstone Copper Corp. (TSE:CS), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are individual investors with 51% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And institutions on the other hand have a 21% ownership in the company. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies.

In the chart below, we zoom in on the different ownership groups of Capstone Copper.

View our latest analysis for Capstone Copper

ownership-breakdownWhat Does The Institutional Ownership Tell Us About Capstone Copper?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

Capstone Copper already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Capstone Copper's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth

Capstone Copper is not owned by hedge funds. Hadrian Capital Partners Inc. is currently the company's largest shareholder with 13% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 11% and 2.4%, of the shares outstanding, respectively. In addition, we found that John MacKenzie, the CEO has 1.9% of the shares allocated to their name.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Capstone Copper

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

We can see that insiders own shares in Capstone Copper Corp.. The insiders have a meaningful stake worth CA$216m. Most would see this as a real positive. If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.

General Public Ownership

The general public — including retail investors — own 51% of Capstone Copper. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Private Equity Ownership

Private equity firms hold a 11% stake in Capstone Copper. This suggests they can be influential in key policy decisions. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.

Private Company Ownership

It seems that Private Companies own 13%, of the Capstone Copper stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Capstone Copper , and understanding them should be part of your investment process.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Most readers would already know that Teck Resources' (TSE:TECK.B) stock increased by 7.7% over the past three months. As most would know, long-term fundamentals have a strong correlation with market price movements, so we decided to look at the company's key financial indicators today to determine if they have any role to play in the recent price movement. Particularly, we will be paying attention to Teck Resources' ROE today.

Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. In simpler terms, it measures the profitability of a company in relation to shareholder's equity.

See our latest analysis for Teck Resources

How Do You Calculate Return On Equity?

Return on equity can be calculated by using the formula:

Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity

So, based on the above formula, the ROE for Teck Resources is:

5.1% = CA$1.6b ÷ CA$31b (Based on the trailing twelve months to March 2024).

The 'return' is the amount earned after tax over the last twelve months. One way to conceptualize this is that for each CA$1 of shareholders' capital it has, the company made CA$0.05 in profit.

What Has ROE Got To Do With Earnings Growth?

So far, we've learned that ROE is a measure of a company's profitability. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company’s earnings growth potential. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics.

Teck Resources' Earnings Growth And 5.1% ROE

When you first look at it, Teck Resources' ROE doesn't look that attractive. We then compared the company's ROE to the broader industry and were disappointed to see that the ROE is lower than the industry average of 8.5%. Despite this, surprisingly, Teck Resources saw an exceptional 29% net income growth over the past five years. So, there might be other aspects that are positively influencing the company's earnings growth. For instance, the company has a low payout ratio or is being managed efficiently.

As a next step, we compared Teck Resources' net income growth with the industry and found that the company has a similar growth figure when compared with the industry average growth rate of 29% in the same period.

past-earnings-growth

Earnings growth is a huge factor in stock valuation. It’s important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). This then helps them determine if the stock is placed for a bright or bleak future. What is TECK.B worth today? The intrinsic value infographic in our free research report helps visualize whether TECK.B is currently mispriced by the market.

Is Teck Resources Efficiently Re-investing Its Profits?

Teck Resources has a really low three-year median payout ratio of 7.0%, meaning that it has the remaining 93% left over to reinvest into its business. So it looks like Teck Resources is reinvesting profits heavily to grow its business, which shows in its earnings growth.

Moreover, Teck Resources is determined to keep sharing its profits with shareholders which we infer from its long history of paying a dividend for at least ten years. Our latest analyst data shows that the future payout ratio of the company is expected to rise to 24% over the next three years. Regardless, the ROE is not expected to change much for the company despite the higher expected payout ratio.

Summary

In total, it does look like Teck Resources has some positive aspects to its business. Even in spite of the low rate of return, the company has posted impressive earnings growth as a result of reinvesting heavily into its business. That being so, according to the latest industry analyst forecasts, the company's earnings are expected to shrink in the future. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company.

For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Eldorado Gold Corporation (EGO) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.

Eldorado Gold Corporation is one of 241 individual stocks in the Basic Materials sector. Collectively, these companies sit at #6 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Eldorado Gold Corporation is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for EGO's full-year earnings has moved 64.7% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

According to our latest data, EGO has moved about 15.7% on a year-to-date basis. At the same time, Basic Materials stocks have lost an average of 2.7%. This shows that Eldorado Gold Corporation is outperforming its peers so far this year.

One other Basic Materials stock that has outperformed the sector so far this year is Southern Copper (SCCO). The stock is up 29.5% year-to-date.

The consensus estimate for Southern Copper's current year EPS has increased 22% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

To break things down more, Eldorado Gold Corporation belongs to the Mining – Gold industry, a group that includes 40 individual companies and currently sits at #26 in the Zacks Industry Rank. Stocks in this group have gained about 9.6% so far this year, so EGO is performing better this group in terms of year-to-date returns.

On the other hand, Southern Copper belongs to the Mining – Non Ferrous industry. This 12-stock industry is currently ranked #36. The industry has moved +23.7% year to date.

Going forward, investors interested in Basic Materials stocks should continue to pay close attention to Eldorado Gold Corporation and Southern Copper as they could maintain their solid performance.

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Written by Amy Legate-Wolfe at The Motley Fool Canada

When it comes to growth stocks, it can be hard to find a stable buy. A company that provides stable growth, dividends, and even more in its outlook. But that’s exactly what we’re looking at today. This dividend stock continues to surge towards all-time highs, with shares still up 45% from 52-week lows.

With that in mind, let’s take a look at why Teck Resources (TSX:TECK.B) is still an interesting buy, even as it nears those 52-week highs.

Earnings up

Teck stock is a diversified natural resources company with significant operations in copper, steelmaking coal, and zinc. The company’s stock has recently been trading near all-time highs, prompting investors to question whether it remains a good buy at these higher levels.

Still, Teck stock reported its latest quarterly earnings in April 2024, showcasing strong financial performance driven by robust demand and high prices for its core commodities. The company reported earnings of $1.56 per share, beating analysts’ expectations. This performance was underpinned by record revenues of $3.2 billion, representing a significant year-over-year increase. Teck’s copper production, in particular, saw a substantial boost due to higher prices and increased output from key mines.

What’s more, the share price of Teck Resources has reflected this strong performance, climbing steadily throughout the first half of 2024. Year to date, the stock has gained approximately 25%, significantly outperforming the broader market and the commodities sector index. This rise has brought Teck’s stock to all-time-week highs, sparking discussions about the sustainability of such valuations.

Looking ahead

The outlook for Teck Resources appears favourable, albeit with some cautionary notes. The global demand for copper is expected to remain strong, driven by the ongoing transition to renewable energy and electric vehicles, both of which are copper-intensive. Analysts project a continued tight supply-demand balance in the copper market, which bodes well for Teck’s revenue prospects.

In its steelmaking coal segment, Teck benefits from its position as one of the world’s leading producers. While coal markets are more volatile and subject to regulatory pressures related to environmental concerns, Teck’s high-quality metallurgical coal is essential for steel production, which remains critical to infrastructure and construction projects worldwide.

Furthermore, Teck stock’s zinc operations stand to gain from rising industrial activity and infrastructure spending, particularly in emerging markets. Zinc is a key material in galvanizing steel and in various industrial applications, supporting steady demand growth.

Bottom line

With shares up 45% and a dividend yield of 0.72%, there are enough reasons certainly to consider Teck stock. Teck Resources’s recent earnings performance and share price surge reflect strong operational execution and favourable market conditions for its key commodities. The outlook for copper and zinc remains robust, driven by structural demand trends in renewable energy and infrastructure.

However, the volatility of commodity markets and regulatory risks, particularly related to coal, warrant careful consideration. Yet, at current levels near all-time highs, potential investors should weigh the company’s solid fundamentals and growth prospects against the inherent risks in the commodity sector.

For long-term investors with a high-risk tolerance and a positive view on commodities, Teck stock could still represent a compelling buy. Meanwhile, those wary of market volatility and regulatory pressures might consider waiting for a more attractive entry point.

The post Up 45%, This Growth Stock Is Still a Top Buy appeared first on The Motley Fool Canada.

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Most Read from Bloomberg

BHP argues it showed restraint in the battle for Anglo, a welcome attribute in a sector notorious for burning billions of dollars of on underwhelming projects and ill-timed acquisitions just over a decade ago. The question now is whether that discipline holds, even with all mining bosses gunning for more volume in copper, the single most coveted metal as the energy transition accelerates.

The Anglo tilt was an ambitious bid to transform the world’s largest miner into the top global producer of the red metal in one fell swoop. Having faltered, people familiar with the matter say BHP won’t rush into more — at least in part because there are few alternatives when it comes to copper. Major deposits are increasingly rare and costly to develop, while the most obvious acquisition targets are effectively out of reach, either because of ownership or valuation.

Anglo comes back into view in six months time under UK Takeover Panel rules, and BHP will wait until then and reconsider its options, said the people, who declined to be named as the discussions are not public.

“What is in BHP’s portfolio is going to take time to deliver and it’s not going to be cheap. That was one of the reasons why they saw an opportunity in Anglo to take their interest in three key assets in Chile,” said David Radclyffe, managing director at Global Mining Research. “Copper is one of those commodities everyone wants to be in, the problem being there aren’t many of those assets and it’s incredibly hard to deliver them.”

The battle over the past weeks has mesmerized the mining sector. A tussle between two of the industry’s largest players, it would have been the most significant tie-up in over a decade — and one of the most complex to boot. Under BHP’s all-share proposals, Anglo would have had to spin off its South African platinum and iron ore assets, before then being purchased by the Australian mining giant.

Anglo’s board rejected the repeated offers, and opted instead for its own turnaround plan.

Read more: CEO Who Said No to $49 Billion Must Now Dismantle Anglo American

That makes the next six months — and beyond, given the intricacy of Anglo’s plan — crucial. If the rescue blueprint falters, the company may be back on the table at a lower price. If it succeeds, Anglo may end up closer to the copper-focused company BHP had sought in the first place.

BHP’s Australian shares have dropped 1.8% since May 28, the day before the miner said it would walk away from the Anglo bid.

Rival Suitors

The trouble for BHP is that down the line other bidders could also step in, including rivals Rio Tinto Ltd., and Glencore Plc. Neither is perfectly positioned today, but both may well be later this year, as investors and executives warm to the idea of deals and Glencore completes its acquisition of Teck’s steelmaking coal business. All are eager to bump up copper production.

Industry bankers and executives have reviewed deals centered on the industrial metal for years, running the rule over copper-heavy like Antofagasta Plc, First Quantum Minerals Ltd and Freeport-McMoRan Inc — but either family owners or expensive valuations have held back approaches, especially in an industry where shareholders remember past profligacy only too well.

“There has been a longer-term positioning by BHP to do more acquisitions, but does that necessarily mean that sort of gives them a blank check to go and do acquisitions at elevated premiums? I don’t think so,” RBC Capital Markets analyst Kaan Peker said.

BHP’s scale, of course, means it does have options of its own. Iron ore remains a cash cow, and its $3.6 billion South Flank iron ore project expansion is on track to reach full production this year — good news even if concerns are growing about the longer-term demand prospects for the steelmaking material.

Its copper portfolio is also substantial, with its massive mines in Chile — including Escondida, the world’s biggest — and Australia churning out more than 1.2 million tons a year. BHP is expanding exploration across the Oak Dam project and drilling at Olympic Dam in South Australia, with its mineral resource estimate expected to be expanded later this calendar year.

But over the coming months, copper deals are unlikely to be far from executives’ minds.

“They’ve clearly shown their hand and basically confirmed what a lot of people have been saying, what companies themselves are saying,” said Sam Berridge, portfolio manager at Perennial Value Management Ltd., which doesn’t hold BHP because it’s negative about long-term iron ore demand.

The cost and the time it takes to build copper projects from scratch are simply too off-putting, Berridge said: “The hurdles there are so high that M&A is a much more appealing option.”

–With assistance from Martin Ritchie.

(Updates with shares in ninth paragraph)

Most Read from Bloomberg Businessweek

(Bloomberg) — De Beers will ditch a controversial experiment to sell lab grown diamond jewelry, ending a six-year program that broke one of its oldest taboos.

Most Read from Bloomberg

While the company long held the technology to make synthetic gems, it always refused to sell them as jewelry, fearing they would undercut the allure of natural stones. Yet as man-made stones gained traction and started competing directly with natural diamonds, De Beers launched its own jewelry brand in 2018.

The company introduced Lightbox to sell synthetic diamonds at a steep discount to rival producers in an attempt to drag prices lower and create a clear divide in consumers’ minds. Now it’s pulling that offering, as De Beers Chief Executive Officer Al Cook overhauls a business that’s set to be cast adrift by owner Anglo American Plc.

As part of a turnaround plan to fend off an approach from BHP Group, Anglo last month said it planned to sell or separate De Beers, ending an almost century-long relationship with the industry’s most famous name. As De Beers — which coined the slogan “Diamonds are Forever” — prepares for that split, it will renew its focus on promoting natural stones.

“We know how to do it and we’re coming back,” CEO Cook said in an interview. “All of this comes together under a big theme of differentiating natural diamonds from lab grown.”

Read More: CEO Who Said No to $49 Billion Must Now Dismantle Anglo American

Synthetic diamond prices have now collapsed, though how much of that is down to De Beers and how much is because of a flood of new supply is open to debate. That undermines the logic for the De Beers venture, with wholesale prices of lab grown diamonds now lower than those of Lightbox, which were well below the going rate when first introduced.

Still, while synthetic diamond prices have collapsed, they’ve caused significant collateral damage. Natural stones used in cheaper 1 to 2 carat wedding rings have tumbled under pressure from synthetics and have so far shown little sign of a sustained recovery.

De Beers will not immediately stop selling its Lightbox stones. It will use up its existing inventory — which will take about a year — and then make a decision on what to do with the business.

Industry participants are still divided on what the long-term impact of synthetics will be and how much of the current diamond industry weakness is cyclical, rather than a structural change, partly brought about by lab-grown alternatives.

Unlike imitation gems such as cubic zirconia, diamonds grown in labs have the same physical characteristics and chemical makeup as mined stones. They’re made from a carbon seed placed in a microwave chamber and superheated into a glowing plasma ball. The process creates particles that can eventually crystallize into diamonds. The technology is so advanced that experts need a machine to distinguish between synthesized and mined gems.

Read More: Anglo Ditching De Beers Is Hard Blow for Troubled Diamond Market

De Beers will turn its focus on so-called category marketing, where it promotes diamond jewelry in general rather than just its own branded gems. It will also expand its retail footprint through its own jewelry stores.

The company will also dip its toe into polishing its own stones, part of the industry dominated by mostly family run firms in India and Belgium.

De Beers is targeting annual core profit of $1.5 billion by 2028. Last year, the business made just $72 million, though traditionally its profits have ranged between $500 million and $1.5 billion as the diamond industry swings from boom to bust.

That volatility created frustration within Anglo, where years of erratic performance eroded returns from more coveted commodities, such as copper.

Most Read from Bloomberg Businessweek

Anglo American is facing a backlash from local Tories over “catastrophic” cuts proposed at a Yorkshire fertiliser mine owned by the FTSE 100 company.

Anglo is planning to scale back investment at the Woodsmith Mine in North Yorkshire after seeking to fend off a £39bn takeover bid from rival BHP.

Tory candidate Roberto Weeden-Sanz, who is campaigning for Scarborough and Whitby constituency where the mine is based, said the project should not become a “sacrificial lamb” for Anglo’s efforts to prevent a BHP takeover.

Mr Weeden-Sanz said he believed Anglo was planning to reduce the workforce by 1,500 and keep a skeleton staff of 100 at the site, which he warned would be “catastrophic”.

He added: “We want them to rethink their current plans, which are essentially to mothball the project.

“There is a huge number of people across the area who are suddenly losing highly skilled, high-value jobs. We’re used to U-turns in politics and it would be no bad thing for there to be a U-turn in Anglo’s decision.”

Anglo chief Duncan Wanblad unveiled plans earlier this month that would leave Woodsmith at a near standstill – Ian Waldie/Bloomberg

Anglo American chief executive Duncan Wanblad unveiled plans earlier this month to dial down investment at Woodsmith and leave it a near standstill. BHP is no longer chasing a bid for Anglo but the group has committed to the Woodsmith overhaul after complaints about its cost from shareholders.

Anglo had been planning to spend about $1bn (£780m) per year on the site, but an update last month cut that back to $200m next year and $100 in 2026.

The company plans to undertake a study to test the site’s feasibility before potentially recruiting other miners to come on to the project as co-investors.

The FTSE 100 group is a major contributor to the local economy, contributing £305m last year.

Since construction at the mine started in 2017, the Woodsmith Project, which is the largest private sector infrastructure project in the country, has generated £1.5bn to the Yorkshire economy.

Ben Houchen, the Tees Valley mayor, said: “Anglo American should not be rushing into decisions that put the livelihoods of hard-working and highly skilled Teessiders at risk.

“We want to hear from Anglo American directly and see them engage with government to make sure every option is considered before drastic measures are taken”.

Jacob Young, the Tory candidate for Redcar, also warned that the project could never restart if contractors were laid off.

The former MP for the Scarborough and Whitby constituency Sir Robert Goodwill previously warned over the impact of shutting Woodsmith. He told The Telegraph last month he was seeking assurances from BHP over the future of Anglo American’s Yorkshire fertiliser mine.

Sir Robert is standing down at the next election.

Anglo declined to comment on the number of job cuts, but said: “These changes will have a direct effect on our business workforce and our team of contractors.”

More details of the cuts will be announced in mid-June, Anglo said.

Investing.com– Anglo American PLC (LON:AAL) was downgraded by Jefferies after a takeover attempt by mining giant BHP Group Ltd (ASX:BHP) fell through this week, with the brokerage citing potential risks as the copper miner undertakes a major restructuring.

Jefferies downgraded Anglo’s London shares to Hold from Buy, and also cut the stock’s price target to 2,700 pence from 3,200 pence. The new PT represents an upside of about 9% from current levels.

BHP dropped its $49 billion bid for Anglo this week after the London-listed copper miner rejected a last-minute request for more time to hash out a better deal.

The key point of contention in the deal was BHP’s demands that Anglo offload its South African platinum and iron ore businesses, which Anglo found problematic.

Jefferies analysts said that Anglo must now execute its own proposed restructuring, which includes a demerger of the South African business, a sale or spin-off of its De Beers diamond unit, a sale of its metallurgical coal business and a review of its nickel business.

While the demergers and reviews do represent potential value, with Jefferies predicting a potential share price of 30.77 to 32.59 pounds from the de-mergers, it largely depends on Anglo’s ability to execute the restructuring without “significant value leakage.”

De Beers presents the greatest risk, given that the diamond unit could be sold or spun-off at a much lower valuation, which could also be the case for the metallurgical coal unit.

A demerger of Anglo’s South African assets is also expected to be rife with political and financial complexities, given that the assets face high regulatory risk in South Africa.

Jefferies’ downgrade of the stock was based on these risks, with the brokerage forecasting that Anglo’s restructuring will likely take longer than expected, at least 18 months.

But Jefferies analysts said they still expected a “considerably higher share price” from Anglo in the long-term.

Anglo American: Jefferies downgrades to Hold as $49 bln BHP offer falls through

Sony stresses PlayStation user engagement as hardware sales taper off

Investors relieved BHP walked from $49 billion Anglo takeover deal

How are the major market averages (^DJI, ^IXIC, ^GSPC) feeling this morning after the Nasdaq’s big climb above 17,000 on Tuesday? Yahoo Finance’s The Morning Brief is here to help investors start their trading day off right as hosts Seana Smith and Brad Smith walk you through the top stories and market trends.

Hess Corp. (HES) shareholders approved the $53 billion buyout deal with Chevron (CVX). In other energy M&A news, ConocoPhillips (COP) is set to acquire Marathon Oil (MRO) in an all-stock deal valued at $17.1 billion. Tortoise Portfolio Manager Rob Thummel told Yahoo Finance that this deal came as a total “surprise.” Lastly, platinum miner Anglo American (NGLOY, AAL.L) rejected BHP Group’s (BHP) bid to extend their merger deadline.

Russell Investments President and Chief Investment Officer Kate El-Hillow sits down with the team in-studio to discuss the market’s momentum trade and the strength of this earnings season’s fundamentals.

This post was written by Luke Carberry Mogan.

Video Transcript

It’s 9 a.m. here in New York City.

I’m Brad Smith alongside Shana Smith and this is Yahoo Finance’s flagship show the Morning Brief Stock Futures right now.

They are in the red after the tech heavy NASDAQ, it closed above 17,000 for the first time here.

And ultimately, uh well, yeah, 35,000 is what we’re seeing here right now.

And ultimately dow Futures are singing the over 250 points with Wall Street poised to open lower this morning.

Treasury yields, pushing higher traders betting that the fed might actually not cut rates until November sticky inflation.

Will that is to blame the FS preferred inflation gauge PC is due out later this week and that will give investors a little bit more insight into the feds path forward.

Let’s get right to the three things that you need to know this Wednesday morning, your road map for the trading day YJ and for a and pro Superman and have more stock futures are falling after the NASDAQ closed above 17,000 for the first time.

Investors focus is shifting to a key inflation data later this week as expectations for the timing of rate cuts continue to see.

Saw with policymakers wary over sticky inflation.

We have to see if Friday’s PC print can help stops regain some momentum.

Plus investors are watching two major deals playing out in the energy space has shareholders voted to approve the $53 billion buy out by Chevron and Conical Phillips is acquiring marathon oil in an all stock deal valued at $17.1 billion.

Meanwhile oil prices are pushing higher and uh shares.

American Airlines under pressure while dragging down the airline sector this morning, American slashes Q two revenue, all the company navigates increased competition in the domestic market and a more cautious consumer.

The airline also announced it was parting ways with its chief commercial Officer.

Well, good morning, everyone.

Our top story this morning, futures pulling back this morning, the NASDAQ closing yet above another record high in Tuesday’s session, Wall Street tracking a rising treasury yields as investors keep their eyes on inflation concerns.

Dow futures.

They’re off more than 200 points in the S and P 500.

Also sliding here this morning.

We’re keeping a close tab, close eye on some of those futures activity.

As we mentioned the dow right now down by about 7/10 of a percent.

Yeah, the dow uh trading lower here, NASDAQ 100 also on track to to open the day in the red as well as the S and P got the S and P sliding below 5300, a few uh key levels here to watch.

But we also got to talk about some of the big deals that are taking place right now and some of the broader picture that’s going on and starting it off with some of the movement that we’re seeing within the energy space.

When you take a look at Chevron, a little bit of a move lower here and just by a fraction though off, just to the downside here, this coming after has shareholders actually approving Chevron’s deal to buy out the company.

Of course, this is a step forward.

But the question here is what exactly is going to happen to he guy on a stake and we know Exxon has very much been putting on the pressure and could have some plans here that could potentially cause the deal to implode.

So of course, that will be the focus here.

And then beyond that, you also got some news out of Conocophillips this morning, that’s moving lower by about 1% a deal here for marathon petroleum.

So again, some more consolidation within the energy space and that of course, could have uh I guess more ripple effects beyond just some of these bigger names and talk about further consolidation within energy.

Yeah, absolutely.

We’re also keeping a close tab on airlines here this morning as we’re taking a look at some of the, as we were toggling on over to these airlines, one of the huge things.

There we go.

Of course, they’re bound to be there.

Notably here, American Airlines, one of those major companies that we’re keeping tabs on here.

You’re seeing those shares down by about nine, nine and a quarter percent here pre market this after the Chief Commercial Officer is stepping down that person leaving the role.

And then additionally, you’ve got uh, more of a warnings for, uh, forecast for the, um, the forecast warning here that has come out from the company here.

So, uh, a lot of that being factored in at the same time, you’ve got some other movement in the space as well.

United catching a little bit of a bid upgrade there.

So we’ll continue to keep tabs on the airline space.

We’ll dive further out into that on today’s show.

But getting back to those two major deals in the energy space has shareholders officially voting in favor of the $53 billion deal to sell the company to Chevron.

And Koco Phillips has agreed to acquire marathon oil in a $17.1 billion all stock deal.

Yahoo finances and Es Farre has the breakdown on the sector.

Hey Innes.

Hey Brad.

Yes.

So first let’s start out with the shareholders which voted to approve the buy out by Chevron that was highly anticipated.

There are still a couple of steps though to this deal, in order for this deal to officially close.

First of all, the FTC regulatory approval has to go through and Chevron is expecting that to go through.

They have put out a statement.

Yes, there spoke spokesperson saying that they’re anticipating that FTC regulatory process to move through in conclusion in the coming weeks.

They also are anticipating that their preemption rights will be affirmed in arbitration.

This has to do with Exxonmobil, which Exxonmobil has taken these companies into arbitration because Exxonmobil is saying that they have the right of first refusal to that stake in Guyana, the very valuable crown jewel that hess has the reason.

The big main reason as to why Chevron wants to acquire Hess because of that stake in Guyana and that would be something that is in the coming months going to be happening with this arbitration.

And Chevron saying that they’re looking forward to completing the transaction and welcoming Hess to their company.

Still, the arbitration is pending here.

As far as the second deal is concerned, this is marathon oil and Conocophillips.

Conocophillips would be acquiring Marathon oil for $17.1 billion in an all stock deal a bit more than that.

If you include debt, this would also broaden Conic’s footprint domestically in the Texas region, in the North Dakota region.

Now, city analysts came out with their take on this.

They’re saying that this has been is not based so much on inventory and growth the way we’ve seen with this other consolidation that has taken on in this space with these bigger players, but this looks more about optimization and also lowering costs.

I spoke to other analyst this morning saying that this deal would be unlikely to face anti trust issues concerns because these companies together would still be smaller than the big major oil companies that we’ve been talking about in recent months.

They’re both considered independent oil companies and without downstream assets without refining distribution and retail guys.

All right, Anne, thanks so much for breaking that down for us.

We want to continue this conversation because oil deals and mergers that are in focus today.

This coming after has shareholders approving an all stock merger with Chevron Conocophillips agreeing to acquire Marathon oil deal making it the sector that rose in 2023 hitting the highest level in over a decade according to the US Energy Information Administration to break this all down.

Talk about some of the acquisitions that are taking place within this space.

We wanna bring in Rob Thumble.

He is the Tortoise Portfolio manager and managing director, Rob.

It’s great to see you here.

So let’s talk.

Let’s start with the Chevron and hes uh shareholder vote there from hes shareholders approving this deal to sold to Chevron.

Of course, this clears what is a major hurdle but other hurdles remain when you talk about Exxon’s involvement here, how exactly that could play out also FTC uh approval whether or not a deal is going to be approved.

So I guess how do you see what happens next?

And how likely is it?

Do you think that that Chevron is going to acquire house?

Yeah, that’s a good question.

So the next step is the FTC approval II I think you just saw ultimately the uh Exxon pioneer deal got, got through the FFTC process.

So you’d probably expect that the, that the Chevron S deal could, could obviously jump back over that hurdle.

But the biggest hurdle is as, and as, and you have been talking about which is, is the, the, what’s it gonna be the, the arbitration and the arbitration and the result of the arbitration drives everything.

If, if the, the arbiter rules uh that ex and CNN are entitled to, to a right of first refusal, then this deal will be, will be off because uh a a as everybody’s highlighted the crown jewel asset of this transaction is the guy on an asset.

And so, um now what’s the probability that’s really difficult to really handicap?

And, and the reason is this is nobody has read the joint operating agreement except for uh lawyers um at, at Exxon, at Co, at Hess and obviously probably a Chevron.

And so everybody, they have their interpretation.

I, I think ultimately though it’s probably good to have Chevron as a partner, I think Exxon would recognize that um as well as co um and, and so, II, I do think that the transaction can happen.

Um But, but it’s really predicated on, you know, probably a handful of words in this kind of super secret joint operating agreement that nobody’s been able to get their hands on.

So, without the Guyana assets, what is the evaluation of this, this price tag for the deal?

Well, well, it goes down a lot.

I mean, I mean, I, you know, I think, you know, he is up probably 20% since the, since the transaction was announced.

Um maybe even a little bit more than that, what I would say is, uh it’s not as if Guyana, Guyana is still worth uh uh a decent amount and, and, and that’s, that’s really the valuation is what’s the valuation?

And that, that’s really part of the arbitration is what is the value that Chevron is placing on Hess and, and does Exxon want to, and, and see want to pursue and pay that, that, that type of value?

But, but that takeover premium would come down.

Uh the he share price would come down if the transaction or if the arbitrator would rule in, in favor of Exxon um in, in this case sometime and, and we expect that sometime probably early next year.

I think the question is if, if Chevron is not able to acquire uh Guyana assets, does this deal then fall apart?

Would Chevron have any interest in Hes outside of the assets in Guyana?

I think the answer that’s no, I, I think Mike, we ceo of Chevron has made it very, very clear that without the Guyana asset, he he if the company is not interested in pursuing a uh uh the the acquisition and the merger with uh on without the guy on asset now, obviously, things can change.

But, but, but ultimately, uh the, the the guy on asset is the, is the critical asset uh for this transaction to occur.

So without it, I don’t think the transaction, uh All right, another transaction we’re tracking here this morning, Anglo American officially rejecting bhps request to extend the deadline for talks on its $49 billion takeover offer here.

I mean, just wanna get your reaction on this rejection here and what the signal is next.

Yeah, I’m not as familiar with that transaction but, but I can tell you there’s a lot of transactions going in the mineral space, in the, in the oil and gas space.

Uh and, and, and obviously valuation, I it is always probably the biggest hurdle when it, when it comes to a lot of these transactions.

So, so that’s probably the biggest driver of, of, of what, what’s causing this the uh potential disruption of this transaction.

All right, let’s talk about Conocophillips because that’s the other big deal that we’re talking about within the space.

Conocophillips and uh marathon petroleum, the merger there.

Talk to me just about one, what this is going to do to Conocophillips business here and then two, just what this tells us just about further consolidation, kind of go on what you were just talking about there before, but further consolidation within this space and the likelihood that this might remain a theme here for at least the quarters to come.

Yeah.

So this is a bit of a surprise and uh and I would say the reason and what I mean by that is I don’t think anybody probably had marathon oil being acquired by Conocophillips.

Um And, but, but when you look at it, uh it does make some sense.

So if you look at the marathon oil assets, they’re good, they’re not great.

But the management has really done a great job of the capital discipline and what that’s resulted in a is in a really high free cash flow yield for marathon oil.

So marathon oil actually has one of the highest free cash flow yields in the oil and gas space.

Um So that’s a bit attractive or that is attractive to somebody.

And, and obviously Conco Phillis is, is, has found it the most attractive at this point.

So when you merge these assets together, what, what Conocophillips gets is some good assets in, in uh you know, across the Bakken in North Dakota, across the Permian and the Eagle Ford in, in, in Texas.

But it gets a lot of free cash flow that it, that then uh can redeploy.

And I think what, what kind of go has done at Ryan Lance and the management have done, they’ve been really, really good at allocating capital.

And so now they’re just getting more cash to allocate whether that’s to shareholders or, or to future acquisitions.

Um, they, they’ve done a really, really good job of allocating capital and this just gives them more capital to allocate in the future.

Is this likely to, uh receive much regulatory scrutiny?

Do you think?

I think these all, all, all of these do, right.

But I, but I do think obviously less, it’ll, it’s a less uh less notoriety than a pioneer transaction or even a transaction.

But yes, it will go through the same process and uh and, and I, and I’m sure we’ll, we’ll go through the same uh rigor that all of these transactions have gone through at the FTC.

Really over the last three or four years, Rob Del Torres portfolio manager and managing director.

Thanks so much for taking the time here this morning, Rob.

Appreciate it.

Thank you.

Well, let’s go to the skies here.

American airline shares.

They are sinking this morning after cutting its sales outlook for the second quarter.

The airline also announcing its chief commercial officer will leave his role next month.

Yahoo Finance.

This pro superman has some of the details on this one for us stock sinking this morning.

Almost 10%.

Ross.

Yeah, yeah, you know the getting hit there and that revised outlook also seeing adjusted EPS for Q two in the one to dollar 15 range that was down for a dollar 45.

So big cut there for the current quarter.

Uh, the original points to some trouble here with summer travel when most airlines are sort of doing well.

Uh, now there are some issues that all airlines are dealing with.

Right.

Uh, Middle East tensions.

Consumers looking for more discounts than revenge traveler is sort of going away this, this summer.

But they still want to travel a little bit but they don’t want to spend uh exorbitant fees for it.

Uh And, but the American sort of revision revisions here with, with, with both profit and revenue, they seem worse than expected.

Plus he mentioned the chief commercial officer Vasu Raja leaving seems he made some bets on things like reducing long haul routes L A to New York which are really lucrative.

He started focusing more on the Sun Belt, which I think is good business but it’s not as lucrative as these bigger longer flights.

And the company needs some more general revenue.

They need more revenue.

It’s not, it’s not meeting expectations here for right now.

And it’s concerns why is this happening to American?

Is it just an American problem?

Yeah, and that is the question, is this an American problem or are we starting to see some of this weakness elsewhere?

When you take a look at some of the other larger domestic players we had, we had uh players like Ryanair talk about, uh, uh, consumers a bit more cautious but Delta, uh, United, they’re not warning about revenue.

They’re doing actually pretty, quite well these days.

I mean, I know Brad, you’re pretty close to Delta, you’ve heard the same as well.

So, I think it’s potentially an American issue.

Um, current CEO is known as a good operator, but they might need, uh, more of a sales stick to come in there and really kind of pump up uh sort of getting after that business consumer uh reestablished some of those longer haul flight routes which just take time and, and uh and from what I understand, they, they sort of diminished the New York to L A business, which was, which is a big business, but then also hard to build back up as you have.

Other, obviously Delta United are big there too.

So that’s sort of highlights some of the challenges Americans face right now.

Uh What’s one of the more prem airlines in the world?

Yeah, I mean, look when you think about the broader airline space here too, the, the larger thing for the summer travel is where companies have started to talk about where demand should be holding steady even as we’re kind of going towards this, this cruising altitude of normalization if you will versus what are some of the problems specific as you were laying it out to American Air versus some of the other airlines out there?

We still don’t know what the ultra low cost carriers are gonna have to navigate during this interim period of time as well.

But at least for this period, it seems like united, even as they had presented or at least given some of the updates going into the busy spring break and then summer travel season, they were seeing demand hold steady right now too.

So we’ll continue to track all of these.

But right now the American airline taking it on the Chin and a lot of the other major airlines down here as well.

In extended hours.

We’ll see where things open up process.

Thanks so much.

Well, we are just getting started here on the morning.

Retail round up Dick Sporting Goods are Ring after boosting his full year guidance and a Crombie shares, but they’re also in the green this morning after posting its strongest first quarter ever, we will speak with an analyst from U BS later on plus two shares are surging up just about a five for actually 12% for two in the back of its earnings report.

State t for a conversation with the company CEO that’s coming up on catalyst.

Next hour, all this and more.

You’re watching.

Yah Anglo American officially rejecting BHPS request to extend the deadline for talks on its $49 billion takeover offer.

The deal deadline will remain at 5 p.m. London time today.

You’re taking a look at the stock reaction here.

Uh pre market we’re seeing BHP group here flat just barely to the downside, Anglo American down by about 1.9% amid a wave of consolidation that we’ve seen in the broader energy sector and specifically oil and gas landscape right now, looking at Anglo American under just a bit of pressure off nearly 2% in pre market.

Now, this comes after like you were just saying they rejected the bhp’s request here for more time.

So what happens next?

So BHP has until 5 p.m. London time today to commit to an offer offer or walk away for six months.

And R BC analyst, uh Marina Collera was out with a quick reaction here noting the Anglo was already below the implied value of BH BS latest offer.

So she sees further pressure as the probability of an acquisition is repriced in terms of what could happen next.

Talk about a possible hostile takeover.

She’s saying that BHP is unlikely to go hostile given the complexity of this deal.

So again, you’re looking at BHP here in pre market up just over 1% on the flip side, you’ve got Anglo American those shares off nearly 2%.

But again BHP has until 5 p.m. London time today to commit to an offer or walk away for six months, right?

And just to further clarify, I should have said commodities landscape consolidation that we’ve seen because this is really more on the multinational mining elements of uh some of the commodities that of, of course are as Anglo American would say in their tag line, improving people’s lives.

So, uh ultimately, at the end of the day, this would kind of consolidate things like diamonds, platinum, copper, iron ore and so forth in some of the mining efforts there.

All right, let’s move on to the retail space.

A couple of big movers out today.

Let’s first start with Dick’s sporting goods jumping after raising its full year earnings guidance, the retailer seeing comp sales climbing over 5% in the first quarter up from a year ago, driven by heightened transactions.

So an increase in transactions, meaning more people are spending buying goods at the store to put it in plain English for everyone.

And again, you’re looking at the pre market trade up nearly 10%.

So why are they seeing this?

Right?

And we talked about some of the changes that have taken place under Ceo Lauren Hobart.

She has been expanding this new retail concept.

She’s renovating current stores.

She’s re relocating some stores as called the House of Sport location.

So it’s more of an experience.

These include batting cages, golf club repairs, management plans to boost spending on both e commerce and a physical location.

So those turnaround efforts, it looks like at least uh helping the stock, at least helping the business for now.

The retailer now expects the com sales are going to be up between two and 3% for the full year with EPS uh within a range of 3 30 1335 to 1375.

And again, you’re looking at a pop here ahead of the open.

Yeah, it’s really interesting here.

I mean, especially looking at the raise in the outlook, you just mentioned some of the specifics on there, but the demand profile that they’re seeing among consumers right now and that’s really pointing back to the products that they’re being able to bring into store here, product pipeline from some of their key brand partners in the vertical brand portfolio, they say has never been better.

So that points back to both the equipment and potentially on the apparel side uh where they’re seeing, for example, as they provide Nike’s recent Paris Innovation Summit highlighting breakthrough products across apparel and footwear that they look forward to bringing to their athletes.

Dick saying that in this release here and talking about some significant momentum that they’re forecasting about a differentiated product and compelling experience that they’re providing.

I just remember running around the track when I used to go into Dick’s sporting goods growing up, testing out out the shoes.

I mean, you gotta put it to the test and you just go for a quick sprint.

That’s the way to do it.

Let’s switch gears here and talk about Robin Hood that so is also turning check on Yahoo Finance this morning, announced a plan to repurchase as much as a billion dollars of its own shares over 2 to 3 year period.

Now, this buyback program is expected to begin in the third quarter.

This is significant because it’s the first uh stock buyback program announced by Robin Hood.

They’ve been rolling out a series of new features trying to cater to that new demand here for products.

So they’re looking to grow really beyond that start up phase, uh which is still pretty much referenced as, but this buyback really under how Robin Hood, I think is adopting a similar approach to kind of win over investors of those as other companies who are, who are a bit more mature, who have been around for a lot more time, obviously.

So they’re saying this as they’re very confident within the business, they’re looking to grow, they’re looking to reinvest, they’re looking to come up with new products.

And again, you’re looking at extended gains of nearly 1% here ahead of the open wave of buyback programs that we’ve seen first of their kind over the course of this earnings season here.

I think back to even as we were speaking with uh Kaufman from Fiver and their CEO yesterday, you’ve got fresh buybacks there.

You got a fresh buyback here on Robin Hood.

And so a lot of focus on, at least for the mindset of the investor that CEO S are trying to send and signal about the confidence of their business.

That’s typically where you see more of these announcements coming forward, especially if you see uh over an extended period of time, a lot of chop or volatility in shares and, and Robin Hood had seen that for a while coming into the start of this year.

But over the past year, take a look at that share price reaction here.

It’s up by about 100 32% fast past 52 weeks.

Uh But notably, I would be interested to see current quarter, uh, what they say after this quarter about what they’re seeing or saw within the broader kind of meme stock frenzy that once again reinitiated, I think that’s gonna be interesting to hear once they finally do report earnings again, but we’re gonna have to wait for that.

All right.

Well, you don’t have to wait for the opening bell on Wall Street.

That’s just around 3.5 minutes away.

So, keep right here on Yahoo financing.

You got much more of the early action ahead.

We’ll be right back.

All right, we’re taking a live look at the opening bells happening at the NASDAQ and the NYSC.

Hey, it looks like, uh, you’ve got the great folks at perspective ringing the opening bell at the NYSC.

Oh, and the winner of the Indie 500?

Joseph New Garden there, front and center ringing the opening bell at the NASDAQ.

You know, I went to Indianapolis for the first time this year and a lot of people are very happy about the Indy 500 there.

No surprise at all brings a lot of, yeah, it brings a lot of uh, a lot of cheddar to the um, local economy.

A lot of De Niro.

Yeah, money anyway.

No, I can’t say I am but I like cars.

So leave it there, checking out where things are opening here this morning.

We got the dow under a bit of pressure.

You got the S and P uh pulling back just a bit.

You can see falling there below 5300 on track to pull back there.

And the NASDAQ Composite closing at a record high closing about 17,000 this morning.

Uh giving back some of those late day gains and checking out some of the sector action, what we are seeing here this morning as we pull that up here, a bit of a mixed picture.

We talked a lot about, we have energy up on our screen because of some of the deals that are taking place here this morning ahead of the Open.

But again, you are seeing a lot of red, you have energy among the out performers.

I guess the best of the worst of the group here when it comes to the fact that we’re still looking at losses of about a half of a percent that along with communication services on the flip side though, if you got utilities under a pretty decent amount of pressure off just about 1% and real estate, a bit of a reversal here today from what we saw early in yesterday’s trading action that’s opening up just off, about 1%.

Jared By with a closer look at some of that movement that we’re seeing.

Jared.

Yes, it is off to the races for the NASDAQ.

So a very fitting opening bell there.

And by the way, I like cars too.

So I just wanted to show what the difference between the NASDAQ and the Dow mainly and also the S and P 500.

This is year to date.

And you can see we have accelerated to the upside right here.

But if we take a look at the dow, well, we just kind of exceeded these highs that we had in April.

Let’s see if I can draw on this.

There we go.

We got a little bit of a punch above, but then we dropped off pretty steeply and we’ve had some bigger losses.

We’ll take a look at that in a second.

Here is the S and P 500.

It is maintaining the highs and it is not broken through that big red candle that you can see there.

That was a bad day in the indices last week.

Uh We can also take a look at the transports pretty weak there and also the small caps.

Here’s the Russell 2000.

But I want to show you what’s happened with the bond market because I think this is really instructive and it’s counter intuitive what’s happening with the sector action.

So this is a year to date chart with the 10 year T note yield.

And over the last 10 sessions or so, we have screamed to the upside.

Now, we’re at the highest level since early May.

And in that time, I’m going to show you what has happened over the last seven days in the sectors.

Now we have tech and communication services.

Those are the only out performers.

Usually when you see going higher, you don’t see uh tech outperforming.

But that’s nevertheless, what is going on here.

And then you can see a lot of dark red real estate down 5% financials down four health care and energy down more than 3% and just peering inside the NASDAQ over the last seven days, you can see NVIDIA now up over 20% since its earnings release last week.

Um But I think uh we what we have here when the rest of the market is kind of fallen off a little bit.

You have this Invidia safety trade going on and maybe that’s what’s been holding up the market because if we take a look at the semi conductors over the last seven days, that is one of the few bright spots and there you have it again, NVIDIA leading the way.

So I’m going to take a brief look at what’s happening today and yes, all 11 sectors in the red here led to the downside by real estate and health care, but I’m going to be watching the Tenure Tino Yield and basically the US bond market for clues as to what might happen next in equities.

All right, Jared, thanks so much.

Let’s talk about the NASDAQ right now because it’s hitting its 12th or hit its 12th record close of the year.

A I really fueling the rally.

One of the biggest names in the story has been NVIDIA.

It’s contributed over 46% of the major averages returns a year to date according to Yahoo finance calculations.

Our next guest thinking that there might be some more room to run in the tech trade here to break it all down.

We wanna bring in Kate Hill Russell Investments, president and Chief investment Officer is here, Kate.

It’s great to have you.

So let’s talk about the ru the massive run up that we’ve seen in some of these tech names.

You talk about a lot of the fact that it’s been driven by only a handful of these larger cap tech plays.

What does that then tell us?

Do you think just about that momentum that we could see in the second half of the year, we still going to see some of this buying activity of these larger cap names?

Yeah.

Well, it’s always hard to call the end of a momentum trade, particularly when it’s supported by some good fundamentals.

And so you know, you’re hitting kind of a new high yesterday.

Yeah, I’d say, like, you know, continuing to add to that right now at these levels, you know, probably if you’re already a holder, you know, wouldn’t do, you know, as much.

But, you know, if you are, you know, you know, in it and, you know, trimming a little bit might make sense, particularly if you think that the A I, uh, trend or theme is a durable one.

And we do, and so you start to see some broadening out into other sectors.

And we’re seeing some of that, whether it’s in utilities, maybe that what we are seeing is the market opens, you know, today or some of the sectors that might be able to benefit from some of the A I productivity gains consumer and health care will probably be some of the first, you know, sectors to be able to see the benefit of it.

So we do see this, you know, still being a well supported trend that could continue.

Um you know, in the second half of the year, if we continue to see in future earnings periods, earnings growth as uh as we’re continuing to track up against whether or not we really do see a recession and a concerted consumer pull back here and no rate cuts then does no rate cuts matter to the markets.

Yeah.

Um I think a slow cut kind of scenario that might start at the back half of the year should be really good for risk assets, you know, cuts that are driven by obviously a recession, you know, have a very different impact.

But if you’re still seeing some, some strong growth and inflation starts to taper a bit and we’ll see what happens with core PC.

You know, at the end of the week is a signal, you’re having some cuts at the end of the year will be helpful but not necessary if you’re continuing to see some of the growth in earnings, even if it slows down a bit helpful.

To what extent, I mean, if, if we do see cuts, what does that then mean for future gains versus if we don’t see cuts?

Yeah, I mean, if you don’t see cuts but you don’t start to have some of this, you know, hawkish tone in terms of hikes.

I think you’re still focused more on the fundamentals and earnings and how companies are doing.

I think certainly more of an edge case if you start to see a concern about inflation coming up and the discussion on hikes coming back in that has a very impact on the market but no cuts at all with growth.

I don’t think it will have a big impact as people focus on the earnings and where we’re seeing the growth coming from, even if we did see some profit taking at these levels.

We were just talking about at the start of this segment some new record highs for the NASDAQ composite, if we did see rotation, where would that kind of flow into from your perspective?

Yeah, so, so I think it ends up being in, you know, consumers in health care, maybe absent some of the political considerations that will happen towards the back half of the year European financials, you know, is another area if you kind of shift out kind of globally where there might be some shifts.

But I think European financial is attractive right now.

Yeah, I mean, I think it’s just like the, the set up and you obviously have some challenges in in Europe from, you know, you know, maybe not as healthy as, as the US is and some cuts that could end up coming through.

But just from evaluation perspective, they could be in a, in a better position.

And I think there’s some, you know, cyclical kind of rotation that you could see there when you talk about the uh gap between the out performers and the underperformers is that set to widen.

If we don’t see the, if we don’t see the fed cut rates this year, I think if you have like higher for longer, it’s gonna start to hurt companies that handle this period.

Well, thinking that there was gonna be some relief coming and if you don’t see that both some of the higher leverage companies, small cap companies, but then even some of the consumers particularly low and middle income, it’s gonna start to pinch and I think that could, you know, start to hurt some of and widen the gap further when we talk about, uh, the performance that we will likely see here going forward.

And I guess what is going to be that massive driving factor we have earning season pretty much behind us now, is it, is it mostly going to be the fed that’s driving this intraday action and some of this volatility that we’ll see, at least in the short term, the shift to macro, you know, post earning season is definitely there.

Now, buybacks and other things now that that window is open may help support the market a bit, but it’s shifted back to to macro particularly as you start to have some of the, you know, the fed speakers, you know, coming in with a bit more of that hawkish to like people are, you know, focused on what’s going to happen.

Are we going to see these rate cuts?

Are we going to see this slowing kind of in the labor market that doesn’t, you know, it’s still a healthy labor market and healthy consumer.

But the back half of this year, if you start to see some slowing, I think that’s going to become a big part of the focus over the near term.

You mentioned the general election.

At what point do markets really start to pay attention to what’s being campaigned on?

What economic policies candidates are discussing.

Yeah, not until the, um, not until kind of the back half of the summer when you start to get the conventions and, and closer to the election, you know, at the end of the day and this won’t be a new thing like elections, you know, generally don’t move, you know, the, the market, you know, much in investors, you need to be focused on the policy shift, as you said and kind of which the administration and you know, whether the House and the Senate you stay aligned you or not.

But you know, right now we’ve got a lot more time.

It’s before it starts driving markets, Kate L Hillo, who is the Russell Investments, president and chief investment officer.

Thanks so much for joining us in studio.

Thanks so much.

Coming up everyone.

We’ve got a fresh pulse on the consumer and we’ve got a deep dive into Abercrombie and Fitch’s quarterly results.

On the other side of the break update, the stores don’t smell anymore.

They say at least that’s what our executive producers do.

Good vibes this morning for Apple Bank of America reiterated the company as the top pick, maintaining a buy rating and a price target of $230 on the stock B of A analysts are optimistic about the adoption of A I enabled phones.

They’re coming.

Dan Dan Yahoo Finance’s Dan Halley here to tell me whether or not these A I enabled phones are coming.

Are they, I think they call them in telephones.

Uh, that is, uh, yeah, in telephones you need to workshop that quotes.

Yeah.

Um, but I mean, look, this is something that Apple clearly has had to work on.

Uh, they don’t have any really generative A I capabilities right now that are doing anything.

Uh, they’ve been teasing this for some time.

Tim Cook has been teasing it, uh, on various, uh, earnings calls just because they’ve been left in the dust.

Microsoft has generative A I Google has generative A I meta uh Amazon, all of these companies are doing it.

Um uh some success, some floods here and there.

Uh but Apple has been the, the one kept out and so this is seen uh by a lot of analysts as potentially a kind of new driver for smartphone sales.

Now, do I feel that way?

Uh Not, not, well, I don’t, I, I, unless they show something at WW DC that’s like software driven that I think is gonna get people excited, then it’s not gonna do anything right?

People care about the camera, the screen and the battery.

Now beyond that, there’s gotta be some amazing software feature.

No one’s ever like, man.

Did you get that Siri update?

Have you ever heard anyone say that?

No, even when Siri came out, people were like, cool.

I’m sorry, I’m sorry.

Yeah, I just activated everybody’s phone.

Um But II I think if, if they can do something with the software that gets people actually excited, then it will be a driver.

Now, what does that look like?

I don’t know.

Right.

Because Samsung and Google already have generative A I capabilities on their own phones and it’s not really a reason for people to wanna buy them.

Right.

It’s more about the capabilities of the phones physically offer.

So I don’t necessarily know that this is going to be the driver that everybody hopes it’s going to be.

Uh unless it truly is something that Apple can say, look at how amazing this is compared to the rest of of what’s out there, this is going to get people to want to buy.

So Dan then how much is riding on the worldwide developers conference here next month?

Just in terms of if there’s any disappointment, what do you think the impact is or I guess what are analysts saying that the impact could potentially be here on Apple and the demand there for their phones at least in the near term?

Well, I think this is really uh a kind of setting up table stakes for like the future of of Apple and their software just because look, they’re already c is behind on this technology that’s changing things, right?

Microsoft showed with their uh their laptops that these are interesting technologies that can do a lot, right?

They have new features called things like recall uh that can kind of pull up anything you’ve been doing on your phone in the past, uh, you know, couple of years, uh, if you have the settings tweaked, right.

Uh, they’re, they’re doing cool, interesting things.

Um, Apple needs to offer that across everything, not just the iphone.

So if they don’t, if they disappoint, um, I don’t think it’s gonna get people to not buy an iphone.

Um, but I, I think it’s going to leave Wall Street and, and, and analysts saying, well, what gives is Apple, has Apple lost its edge?

And I think that’s more along the lines of what would happen is that the right way and going back to what you just said a minute ago, that Apple is very much viewed as maybe lagging when the comes to A I adoption in the A I race right now.

Is that the right way to view Apple at this point?

And I, I guess, is it a bit surprising just given the fact that you’ve covered the company for so long and it’s normally on the cutting edge when it comes to technological advances and adoption?

Yeah, I think, I think it’s a, I think when it comes to where they should be as far as at least having something uh to preview, right?

They’re, they’re behind, right?

But if you look at something like uh uh meta, they’re releasing these technologies as open source.

So it’s not really finding its way into too many products.

It’s more on the advertising side.

Um You know, Amazon, obviously, this is more about they have their uh Rufus uh A I assistant which is helpful but has its issues.

Um Google has launched Ja I it’s telling you to eat rocks, right?

So apple doesn’t want to do that, right.

That I think would be a bigger problem for apple and the perception of apple than it would be for, for something like Google.

Now, it’s a huge problem for Google because they’re supposed to be the source of trust online.

You don’t say let me Google this real quick because you don’t trust them, you do it because you do trust them.

So it’s a huge problem for Google.

Apple is all about fit and finish.

It’s all about delivering a product that people love and if they flo that, I think that would be a bigger problem than not having anything at all.

Nobody should be surprised that artificial intelligence is telling humans to eat rocks.

Yeah, I mean, look, eat rocks, eat paste.

It’s totally fine.

Uh And uh yeah, I mean, look, it’s not uh like you ever go to Google for anything important, you know.

So, well, we’re just going to leave it there.

Great with us here this morning for about 20 minutes into about 17 minutes into the trade.

You take a look at where things stand.

You’ve got the dow of nearly 400 points, a bit of a pullback here.

This morning, the S and P following further below 5300.

But the NASA take a look at that now off just around 7/10 of a first hand pulling back after, at another record high yesterday, above 17,000, we’re seeing a pull back just over 100 base points here this morning.

So again, some downward pressure across the board, we take a look at the sector action that’s reflected in the sector action to this morning.

All 11 of the S and P sectors here under a bit of pressure, real estate.

The worst performer of the group followed by financials and health care.

We’ll be right back.

Consumers still flocking to Abercrombie and Fitch name them shares.

Rallying on Wednesday after beating profit expectations and posting strong sales in the first quarter.

The company raising its full year sales outlook as demand across apparel and accessories continues to grow for a deeper dive into the results.

Yahoo Finance executive editor Brian Sozzi here with the breakdown.

Look, I I said name them but like I am one of them.

I made my my way in one of the stores like last week.

Yeah, this quarter, I just want to put this in context.

Um This is not going to be the norm from these retail earnings that are coming up.

We saw it when Walmart Report, we saw it from t reported a couple week ago, apparel is just soft and we saw it within Macy’s results.

So for Abercrombie again, to put up a, I would say mind blowing quarter is, uh, a very much an Abercrombie driven story.

So, what is this company doing?

Right.

It’s just getting its styles, right?

Uh, it’s keeping in its inventory under wraps.

This is a company that grew sales over 20% in the most recent quarter and its inventory was flat.

What is that telling you?

It’s that it’s just planning its business very well and it’s not overstocking items.

It’s putting new merchandise on the floor and the stuff is selling out.

Well, one area of the business that really caught me by surprise guys on the conference call moments ago was the wedding business is the business.

They recently launched Abercrombie and Fitch and it’s, uh, the Fran Hoitz CEO will talk to a little bit later on, uh, this afternoon saying it’s one of the hottest businesses they have right now can’t keep the stuff in stock and it’s not only that they’re coming in and buying wedding dresses, uh, from Abercrombie and Fitch or various wedding styles.

These are new customers in many cases to the Abercrombie brand and that is having that is sending customers to other areas of the store.

You know what?

That’s so interesting because it makes sense when you take a step back and think about it because it was really the millennial shopper who knew Abercrombie so well, decades ago, right?

And so now many of those people are in the age of, they’re getting married, they’re having weddings.

So why not buy at Abercrombie?

I didn’t even know I just pulled it up.

I pulled it up on my, on my computer right now.

I had no idea that they even had this business until you just said it.

But it makes sense because it also re the remaining committed to their loyal customers and they’re playing into that base that has worked well for them.

You see the film, you see the fitness.

Look, I saw, I saw the fit and I was upset because you were teasing this to us before.

And yeah, I didn’t see this coming at all.

They don’t have tuxes there though.

I was just there.

No tuxedos.

They’re not going to compete with the men’s warehouse.

But also interesting to uh Abercrombie noting on the conference call that they are now going to, I think now that their US business is solid.

Abercrombie’s working Hollister businesses finally start to turn they’re shifting their or shifting their sites to uh Europe, notably, uh Germany and the UK.

In fact, Fran Horowitz, uh saying she was just in the UK for and had their first annual board meeting there uh in, in quite some time.

So look for the company now to expand overseas a little more aggressively and thoughtfully and then also open up a good number of stores here in the US in the back half of the year we should clarify.

This is like wedding.

I’m still hung up on this wedding guest attire is what?

But they have stuff that you could wear for your wedding.

Walking down the aisle, rehearsal dinner, there’s a lot of stuff you could wear.

They get, yeah, get you geared up for your back.

I’m here to bring you this like a hashtag breaking news.

This one you can wear down the aisle, not me But yeah, if you wear head to toe, Abercrombie and Fitch, why not just live that wedding lifestyle and go out and buy one of these dresses you would, you, would you buy, would you get something from there?

Of course, why not?

I mean, it’s not bad.

Yeah, it’s not bad and it’s also a very affordable price point, especially when you compare it to some of the other.

I’m gonna put this to uh Ceo Fran Horace because I walk, walk by my latest, uh my recent my Abercrombie Fitch store, uh Roosevelt Mall and I didn’t see any of this stuff.

So I gotta ask her, what, where is this?

And why is not my store one?

Yes.

Yeah.

Maybe we should be buying more of these dresses.

I have no weddings to go to.

Nor am I getting married.

Not yet.

Nor do you need a dress any time any of that stuff on the wedding site.

But we’re gonna be asking Brian all of these tough questions.

We’re gonna have a deeper dive into the company’s latest earnings results.

Also the wedding business.

So has a heck of a lot of questions on that.

People come to my wedding.

That’s about it.

I mean, I know maybe one of my pets.

How about you?

Do you really want to come?

Good, uh Good gifts.

I give you for your another segment.

Great.

Thanks so much.

Coming up.

We are going to be taking a deep dive into the big deals in the energy space and what it means for the industry.

Plus the CEO of Chewy joining us here on set to talk consumer spending on pet some of the trends that he’s seeing within his business.

What it tells us about the health of the consumer that’s all coming up next on catalyst.

We’ll be right back.

Anglo American (AAL.L) has rejected BHP Group’s (BHP) request to extend the discussion deadline on its $49 billion takeover offer. BHP has until 5 p.m. BST Wednesday to commit to an offer.

Yahoo Finance’s Seana Smith and Brad Smith discuss the deal and its potential impact on the commodities landscape.

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

This post was written by Melanie Riehl

Video Transcript

Anglo American officially rejecting BHPS request to extend the deadline for talks on its $49 billion takeover offer.

The deal deadline will remain at 5 p.m. London time today.

You’re taking a look at the stock reaction here.

Uh, pre market.

We’re seeing BHP group here flat, just barely to the downside.

Anglo American down by about 1.9% amid a wave of consolidation that we’ve seen in the broader energy sector and specifically oil and gas landscape right now, looking at Anglo American under just a bit of pressure off nearly 2% in pre market.

Now this comes after, like you were just saying they rejected the BHP’s request here for more time.

So what happens next?

So BHP has until 5 p.m. London time today to commit to an offer offer or walk away for six months.

And R BC analyst uh Marina Clara was out with a quick reaction here, noting the Anglo was already below the implied value of BH BS latest offer.

So she sees further pressure as the probability of an acquisition is repriced in terms of what could happen next.

Talk about a possible hostile takeover, she’s saying that BHP is unlikely to go hostile, given the complexity of this deal.

So again, you’re looking at BHP here in pre market up just over 1%.

On the flip side, you’ve got Anglo American those shares off nearly 2%.

But again, BHP has until 5 p.m. London time today to commit to an offer or walk away for six months, right?

And just to further clarify, I should have said commodities landscape consolidation that we’ve seen because this is really more on the multinational mining elements of, uh, some of the commodities, uh, of of course, are, as Anglo American would say in their tag line, improving people’s lives.

So, uh, ultimately, at the end of the day, this would kind of consolidate things like diamonds, platinum, copper, iron ore and so forth.

In some of the mining efforts there

(Bloomberg) — Anglo American Plc said it won’t give BHP Group any further time to commit to a takeover offer, threatening to end a $49 billion pursuit by the world’s biggest mining company.

Most Read from Bloomberg

The decision sets up a dramatic climax to the five-week battle between two of mining’s biggest names, just hours before a 5 p.m. deadline. Anglo has repeatedly rebuffed proposals from BHP to partly break up and then acquire the 107-year-old company, but last week agreed to a one-week extension to a UK deadline in order to extend talks. BHP must now decide whether to make a firm offer without the support of Anglo’s board in the coming hours, or walk away for six months.

Anglo is opposed to BHP’s complicated deal structure and the two sides have been unable to find a solution. BHP made a last-minute push to pressure Anglo’s board earlier on Wednesday, citing commitments it has made to help get the deal approved in South Africa and saying it believed the risks were manageable.

Read: BHP Asks for More Time in Last-Minute Plea to Anglo

Just over three hours later, Anglo said its biggest concerns have still not been addressed.

“BHP has not addressed the board’s fundamental concerns relating to the disproportionate execution risk associated with the proposed structure and the value that would ultimately be delivered to Anglo American’s shareholders,” it said. “The board has therefore unanimously concluded that there is no basis for a further extension.”

Anglo’s shares retreated as much as 7.6% after its statement before paring the losses to trade 1.7% lower. The stock is trading about 17% below the implied value of the most recent BHP proposal.

Bloomberg has previously reported that BHP had no intention of going hostile with an offer directly to Anglo’s shareholders, which would also require it to buy the whole of Anglo, including the South African businesses.

A successful takeover would create a commodities powerhouse that towered over its closest rivals, significantly increasing BHP’s copper production at a time when miners and their investors are positioning for a prolonged period of tight metal supply and rising prices. The bid has also cemented the return to large-scale M&A among the largest mining companies, after a string of disastrous deals left BHP and its rivals on the sidelines for over a decade.

If BHP walks away, the pressure will be on Anglo and Chief Executive Officer Duncan Wanblad to show that its turnaround strategy can generate more value than BHP was offering. The company, which was left vulnerable after a series of setbacks over the past year, has outlined a plan to exit coal, diamonds and platinum and slow down spending on a massive UK fertilizer mine.

Read more: BHP and Anglo Remain Split on South Africa as Time Runs Out

Anglo’s objections to BHP’s proposal have centered on South Africa, which has loomed front and center of a potential deal ever since Bloomberg first reported the takeover approach. It is home to some of Anglo’s biggest operations, employing tens of thousands of people, and the company has deep political and social ties to the country.

Anglo is concerned that BHP’s demand that it first exit Anglo American Platinum Ltd. and Kumba Iron Ore Ltd. could leave the newly independent Johannesburg-listed companies to carry the cost of any concessions imposed by South Africa, reducing their value and ultimately penalizing the current Anglo investors who would receive the shares in the spinoffs. The multistep deal would require several layers of approval in South Africa, where deals are subjected to “public interest” assessment and authorities have a record of extracting substantial concessions from companies.

As a result, Anglo, which this month rushed out a radical restructuring plan of its own, wanted BHP to either change the structure or commit to cover any future costs to its own shareholders.

BHP said in its statement earlier on Wednesday it was confident the deal would be approved and that the risks are “quantifiable and manageable,” based on similar transactions.

BHP said it’s also willing to discuss paying a break-up fee if the deal isn’t approved, without giving a proposed figure.

It has agreed to share in the costs of any additional employee-ownership requirements of the South African businesses and make commitments on issues like charitable spending and local procurement in South Africa. BHP noted that it had “already factored the costs associated with these risks into the offer ratio of its proposal.”

Several of Anglo’s biggest shareholders said last week that they supported the company’s efforts to persuade BHP to change the structure of its takeover proposal or compensate for the risks it presented. Elliott Investment Management has also emerged as one of Anglo’s biggest shareholders, but has yet to comment publicly on the BHP proposals.

(Updates with context and shares.)

Most Read from Bloomberg Businessweek

International Distributions Services (IDS.L)

Royal Mail owner International Distribution Services said it has agreed to a £3.57bn ($4.56bn) takeover offer from Czech billionaire Daniel Kretinsky’s EP Group.

The offer consists of 360p in cash, plus a final dividend of 2p per share and a special dividend of 8p per share. Including debt, the deal values IDS at £5.28bn.

IDS said if the deal goes through Royal Mail would continue its universal service obligation to one-price-goes-anywhere first-class post six days a week, and keep the company’s branding and UK headquarters.

It also said it would protect existing employment rights of all IDS staff, and that there is “no intention to make any material changes to overall headcount or reductions in the number of frontline workers” beyond existing plans.

Nvidia (NVDA)

Heavyweight chip maker Nvidia surged by almost 7% to a new high this last session and is the number one trending ticker in pre-market trading as the AI darling eyes Apple’s (AAPL) spot as the world's second most valuable company by market cap, behind Microsoft (MSFT).

Nvidia shares soared to a record high on Tuesday, putting it close to overtaking Apple with Nvidia now valued at $2.8tn, just shy of Apple's $2.9tn. Shares finished the day above $1,140.

The milestone moment comes after Elon Musk’s artificial intelligence startup xAI said Sunday that it raised $6bn in a Series B funding round, sending Nvidia stock up as much as 8% the following trading day.

"The market has been struggling to keep up with the company's ever improving growth trajectory. At a mid-thirties forward earnings multiple, this still doesn't feel like bubble territory," said Derren Nathan, head of equity analysis at Hargreaves Lansdown.

The stock has now jumped by a third since the start of May, and by 137% over the year to date.

Anglo American (AAL.L)

BHP (BHP.L) has called for further extension to a bid deadline to allow for more talks over a £39bn takeover of rival Anglo American.

Under UK takeover rules, the Sydney-based company faces a deadline of 5pm UK time on Wednesday to make an offer for Anglo or walk away for 6 months.

"BHP believes a further extension of the deadline is required to allow for further engagement on its proposal,” it said.

The mining company said that it was ready to offer a break fee to Anglo American if the deal was blocked due to anti-trust reasons or if it failed to gain regulatory approval.

“BHP is confident that the measures it has proposed to the board of Anglo American provide a viable pathway to resolve the matters raised by Anglo American and would support South African regulatory approvals,” it added.

Anglo previously claimed the offers were too risky and complex. The latest bid valued it at £38.6bn. It came after BHP had put forward two prior bids, valuing Anglo at £31.1bn and £34bn respectively.

American Airlines (AAL)

Shares in American Airlines sunk over 15% after the company cut its guidance on second profit as softer demand is expected to dent revenue.

The Texas-based carrier now expects second-quarter adjusted earnings in the range of $1.00 to $1.15 per share, compared with its previous forecast of between $1.15 and $1.45 per share.

It forecast total revenue per available seat mile, a proxy for pricing power, to be down about 5% to 6% from a year ago. That compares with a decline of 1% to 3% expected earlier.

The airline also announced that its chief commercial officer, Vasu Raja, will leave the company next month. He has been in the role since April 2022.

American Airlines said its vice chair and chief strategy officer Stephen Johnson will take on Raja’s brief with immediate effect.

Jefferies, which had upgraded the company earlier this year over cost controls, said it was downgrading the stock to "hold" as "the strategy has not gone as planned."

Watch: Nvidia aiming beyond chips with AI ecosystem

Download the Yahoo Finance app, available for Apple and Android.

(Bloomberg) — BHP Group is seeking more time to discuss its $49 billion takeover plan with Anglo American Plc and outlined a series of commitments to the smaller company, with just hours left to go until a crucial deadline.

Most Read from Bloomberg

The two miners are at an impasse over the proposed structure of BHP’s deal, which requires Anglo to first spin off its holdings in two South African companies before a takeover. Anglo says that the plan creates too much risk for its own investors, who will be left holding shares in the spinoffs.

Read More: BHP and Anglo Remain Split on South Africa as Time Runs Out

BHP outlined a list of proposals it says will ensure that Anglo’s shareholders don’t “disproportionately” bear the cost of the deal. BHP also said it’s prepared to discuss a break fee, which would be payable if it didn’t secure regulatory approvals.

However, the latest statement didn’t appear to address the biggest concerns cited by Anglo and its shareholders, regarding the potential loss of value in the South African businesses as a result of the spinoffs.

Anglo’s shares fell 1.3% to £25.25 as of 8:15 a.m. in London, to trade about 16% below the value implied by BHP’s most recent proposal.

On the measures it outlined on Wednesday, BHP said it has “already factored the costs associated with these risks into the offer ratio of its proposal.”

The measures included commitments to share in the cost of any requirements to increase employee share ownership of the South African businesses, maintain funding for Anglo’s charitable commitments and support local procurement in South Africa. BHP said it will maintain these measures for at least three years.

Anglo has repeatedly rebuffed proposals from BHP to partly break up and then acquire the 107-year-old company, but last week agreed to a one-week extension to a UK deadline in order to extend talks. BHP now has until 5 p.m. London today to commit to a firm offer or walk away for six months.

From the moment BHP’s takeover approach first became public, South Africa has loomed front and center of a potential deal. It is home to some of Anglo’s biggest operations, employing tens of thousands of people, and the company has deep political and social ties to the country.

The structure of BHP’s proposal — which required Anglo to first spin off its South African platinum and iron ore units — has remained a crucial sticking point. Anglo wanted BHP to either change the structure or commit to cover any future costs to its own shareholders — who will end up owning the listed South African companies — as a result of the multi-step deal.

Earlier this month, Anglo rushed out a radical restructuring plan of its own.

“BHP believes a further extension of the deadline is required to allow for further engagement on its proposal,” it said in a statement Wednesday. The company said it “believes that the proposed measures it has put forward provide substantial risk protection for Anglo American shareholders and supplement the significant value uplift that Anglo American shareholders will receive from the potential combination.”

While the two sides have been getting closer on value, they have made little progress on the structure of the deal, Bloomberg reported Tuesday.

The outcome of this week’s talks could have far-reaching implications for the mining industry. BHP is already the sector’s most powerful company, and a successful deal would leave it towering over its biggest rivals.

The bid has also cemented the return to large-scale M&A among the largest mining companies, after a string of disastrous deals left BHP and its rivals on the sidelines for over a decade.

Why BHP Is Targeting Anglo in Mining Mega Deal: QuickTake

(Updates with details throughout and shares in fifth paragraph)

Most Read from Bloomberg Businessweek

(Bloomberg) — With just hours left on the clock, advisers for BHP Group and Anglo American Plc were still struggling to find a breakthrough to salvage BHP’s ambitious $49 billion takeover plan.

Most Read from Bloomberg

BHP has until 5 p.m. London on Wednesday to commit to an offer, after Anglo agreed to extend a previous cutoff to allow for discussions. The two sides were getting closer on a value for a potential deal, Bloomberg reported last week, and BHP Chief Executive Officer Mike Henry has jetted into London for last-ditch meetings with investors ahead of the deadline.

Yet the key hurdle to any deal remains the same as it has for the past five weeks: BHP’s complicated transaction structure. Anglo argues that the requirement that it first spin off its majority stakes in two South African miners creates too much risk for its own investors who will end up holding those shares, and wants BHP to either change the structure or compensate its shareholders for any loss of value as a result of the spinoffs.

Read more: BHP Has a Week to Convince Anglo Its South African Plan Can Work

The two sides have struggled to find a resolution to the impasse, according to people familiar with the matter, who asked not to be identified because the talks are private.

The situation remains fluid and could change at any point. But with time running out, BHP will likely need another extension to the UK regulatory deadline to keep its bid alive. As things stand, there’s no guarantee that Anglo will make that request, the people said.

“There’s still a lot to play for on both sides. My first assumption is that they will kick the can down the road,” said Glyn Lawcock, head of resources research at Barrenjoey in Sydney. “Anglo directors have to be cognizant of what is on the table. If they knock this back, they will have something to live up to. It’s a stake in the ground.”

The outcomes of this week’s talks could have far-reaching implications for the mining industry. BHP is already the sector’s most powerful company, and a successful deal would leave it towering over its biggest rivals. The bid has also cemented the return to large-scale M&A among the biggest mining companies, after a string of disastrous deals left BHP and its rivals on the sidelines for over a decade.

The negotiations will determine the fate of one of mining’s oldest companies. Anglo American, which traces its roots in South Africa to its founding 107 years ago, was left vulnerable to BHP’s approach after a series of setbacks over the past year that depressed its share price. While rebuffing BHP’s approaches, Anglo announced its own dramatic restructuring plan that would see it exit diamonds, coal and platinum — including the South African platinum firm that BHP wants it to spin off.

Read more: Anglo-BHP Battle Is Between Two CEOs Fighting Over Same Vision

From the moment BHP’s takeover approach first became public, South Africa has loomed front and center of a potential deal. It is home to some of Anglo’s biggest operations, employing tens of thousands of employees, and the company has deep political and social ties to the country.

Anglo is concerned BHP’s demand that it first exit Anglo American Platinum Ltd. and Kumba Iron Ore Ltd. could leave the newly independent Johannesburg-listed companies to carry the cost of any concessions imposed by South Africa, reducing their value and ultimately penalizing the current Anglo investors who would receive the shares in the spinoffs.

People close to Anglo said that BHP has failed to acknowledge the scope of the execution risks of its deal structure and that the company needs to make material changes to its proposal. So far BHP has failed to do that, the people said.

However, people with knowledge of BHP’s position countered that Anglo has yet to lay out exactly what the issues are, preventing them from providing clear remedies. Advisers to the company are frustrated that Anglo is presenting unquantifiable and unspecified obstacles to the structure.

Spokespeople for Anglo and BHP both declined to comment.

Anglo’s shares fell 2.2% on Tuesday, to trade 14% below the value implied by BHP’s most recent proposal. BHP’s Australian shares were virtually flat in early afternoon trade on Wednesday in Sydney.

BHP has targeted Anglo primarily for its copper mines, and the combined company would easily become the world’s biggest producer of the metal essential to decarbonize the global economy. Benchmark copper prices hit a record last week and have surged about 23% this year.

Anglo, under CEO Duncan Wanblad, has provided its own plan to focus on copper mines and iron ore, its two biggest and most consistent earners and the businesses that BHP is most attracted to. It will also stick with its Woodsmith fertilizer project in the north of England that some investors have pushed for it to quit, while dramatically cutting spending.

Henry and Wanblad also have a large group of shareholders in common, who could have the ability to pressure either side to find a way to make a deal, or alternatively draw the line and end negotiations.

(Adds analyst comment in 6th paragraph, Australian shares)

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